UPDATE 1-AT&T revenue up but profit down on iPhone, costs

* Q4 revenue $31.1 bln, in line with Wall St. view

* Adjusted EPS also in line

* 2.1 mln wireless subscriber additions

* Shares up slightly premarket

NEW YORK, Jan 28 (Reuters) - AT&T Inc (T.N) said fourth-quarter profit fell despite higher wireless sales as the top U.S. phone company paid high subsidies to support Apple Inc's (AAPL.O) popular iPhone and traditional phone users disconnected their service.

AT&T said net profit fell to $2.4 billion, or 41 cents per share, from $3.1 billion, or 51 cents per share, a year earlier.

Excluding items such as merger-related expenses and severance costs related to job cuts, earnings fell to 64 cents a share from 71 cents a share.

Revenue rose 2.4 percent to $31.1 billion, roughly in line with the average forecast on Wall Street.

AT&T, along with No. 2 player Verizon Communications Inc (VZ.N), has been depending on wireless subscribers for growth amid a decline in its traditional wireline customers.

AT&T said it added a net 2.1 million subscribers during the quarter. Analysts on average expected 1.9 million.

The shares rose slightly in pre-market trade to $26 from their close at $25.93. (Reporting by Ritsuko Ando; Editing by Steve Orlofsky)