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the iphone works as a phone but the ipod works as a music plyaer. unlike an ipod, the iphone:- can make phone calls- can send and receive texts- has gps- allows you to surf the internet over at t or verizon's cell service (you don't need wi-fi to go on the internet)the iphone has more features. the reason that it costs less to buy is because in order to use it, you MUST sign a phone and data contract with verizon and at t. this contract requires you to pay a monthly fee. over a 2 year period, the iphone will end up costing more money.one more thing: the iphone doesn't come with 12GB. it comes with 16GB or 32GBbest of luck!


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