Why does the new iphone cost less than an itouch?

Question

the only difference i can find between the two is that the iphone actually has a phone... so shouldn't it cost more? the reason im asking this is because i dont have at&t so i cant have the iphone so i want the itouch for the internet but its about $100 more than the BRAND NEW iphone 3G!

Answer 1

Yeah but think bout how much a month you pay for the iphone in service. Minutes, texting, and especially the data plan (internet) is a nice fee every month. So sure the Iphone is cheaper, but you gotta pay a service fee every month anyways to use it. Also, just so you know, the Itouch internet can only be used where there is a free/open wifi network, whereas the Iphone can be used anywhere you get signal pretty much.