Alright. The debate of whether going for Apple iPhone or the Apple iPod touch seems rather too daft, but I think — as an apple fan boy — I should cover this at Indialoka.
I also assume that if you’re reading this, then you don’t have apple iPhone or the iPod touch yet. So, I’ll do my best to cover all the possible advantages both the apple devices has to offer.
Apple iPhone Versus iPod touch
For starters, iPod touch is similar to MP3 players but you can also enjoy playing games, using apps on the large touch screen. In iPhone, all the benefits of iPod touch are inherited, plus you can make phone calls in iPhone.
All the new models of the Apple iPhone has 3G whilst the iPod touch doesn’t include this feature. Note that iPod touch 3G doesn’t have this feature, nor the latest iPod touch 4G (has facetime video calling feature though).

iPhone 3GS in India
Apple have merely branded the iPod touch with 3G name, so its indeed deceiving. However, Apple iPhone has 3G for real. This 3G lets you connect to wide-area wireless network, do voice telephone, access internet from anywhere, make video calls and watch TV on your mobile phone.
BSNL and Tata docomo have come up with 3G plans, but the tariff plans aren’t cheaper. So, majority of Apple iPhone users in India aren’t using 3G. Hence, iPod might seem like a good buy.
Also read: Can US iPhone work in India?
Why the iPod touch?
iPod touch is cheaper. And the new model: iPod touch 4G has better sound clarity, is thinner and comes with a retina like display (although not as good as iPhone 4). However, this new model isn’t available in India yet.
But you can go with iPod touch 3G, like I said this doesn’t have 3G but you can live with that, right? It has WiFi, great microphone sound clarity, good screen and is almost similar to Apple iPhone 3GS and iPhone 3G.

iPod touch 3G model
Of course, iPod touch differs from Apple iPhone because it doesn’t make calls.
iPod touch 3G can be bought at Rs. 9000 to Rs. 10000 while iPhone 3GS price ranges something in between Rs. 27000 to Rs. 29000.
But the iPhone 4 is costlier as it is not yet officially available in India. You can purchase it online for a price of anything between Rs. 37000 to Rs. 45000. Note: iPhone 4 White color isn’t available yet.

iPhone 4, yet to be launched officially in India.
If you are running out of budget, then iPod touch is the best buy. But then, you have cell phone in one pocket and iPod touch in the other. So, iPhone is all in one gadget that might not fit your budget but it definitely fits in one pocket.
Any questions? Would love to answer
[...] Features, Specifications of iPod touch 3G [iTouch 3rd Generation] First time buyers of apple device are often baffled on which one to choose: the iPod touch or the iPhone. [...]