iPod Touch vs. iPhone
When Apple released the iPhone in January 2007 it became all the rage. Suddenly eager customers were lining up in front of every Apple store and reseller in the United States hours before the store's opening in the hope of being lucky enough to get their hands on the iPhone. However many people who purchased the iPhone failed to do their research and only found out after that the iPhone could only be used with AT&T, and not only that but it couldn't be used at all until it was activated with the AT&T wireless service. This sparked some controversy because not everyone had the intention of using the iPhone as a phone. The iPhone's appeal lies in its sleep design and previously unreleased features, namely the multi-touch screen and wi-fi browser. Apple heard the cries of the masses and in September released the iPod Touch, a seemingly identical iPhone clone without the phone features. However there are more differences between the iPod Touch and the iPhone than meets the eye. The iPhone offers many more options than the iPod Touch:
2 MP integrated camera
The lack of a flash and autofocus, the iPhone's camera is not on par with cameras found on other mobile phones. The camera should not be a major factor in your decision between the iPod Touch and the iPhone.
Bluetooth connectivity
Bluetooth connectivity is an option that can be very useful for transferring files between two bluetooth devices. Other than that, music and other files can still be transferred using the wi-fi connection available on the iPod touch.
Speaker
In a quiet environment the iPhone's speakers are very average, in a noisy environment they are completely drained out. The iPod Touch's lack of speaker does tip the scale.
Microphone
An option that is good to know is there, but chances are will never be used. The microphone does not offer any sound isolation and picks up every noise around.
Volume buttons
The volume buttons are a great advantage of the iPhone. They allow for easy volume adjustment while the iPhone is in a pocket or a purse.
Lower quality screen display
The Ipod Touch's screen in comparison to that of the iPhone's is in fact of lower quality. The iPod Touch has a dimmer screen. When put side by side the iPod Touch does not display low light frames as well as the iPhone.
With the analysis above it would seem apparent that the iPhone is a clear winner, but with a $200 price tag difference I would have to say the iPod touch is the real winner. The iPhone is very awkward to use as a phone. If you are looking for a PDA phone I would recommend a Palm Treo over the iPhone. If you're just looking for a fantastic feature rich mp3 player the iPod touch is a great choice.