According to some consumer responses, the iPhone has a better camera and voice recognition equipment. It is also slightly faster than the iPod touch due to its dual core processor which gives it more memory - the difference here is not great, though. The screen is considered better too.

A more major difference is that the iPhone comes with 3G, while the iPod touch is just Wifi (though this should be different with the next version). The iPhone also costs more, but this is reflected in the higher overall quality and greater amount of use you are likely to get from it. The general opinion is that the iPod Touch is great as an entertainment centre and the iPhone has more practical applications, so it also depends on what you're going to use it for.

If you type 'iPod touch iPhone difference' in a search engine, you wll be linked to several consumer websites - you may like to browse these before you make up your mind.