Since I want the iPhone 3GS so bad, yet I already got an BlackBerry and iPod touch; I decided to see if I could get it outright with no contract, so I can switch phones with one SIM card. So, you would be pretty shocked to hear that I don’t want it now – why? Well, it’s called the difference between prices.

For the iPhone and iPod touch, there is nothing different – except for the fact that one is a phone, and one is not. So, I decided to see how much, since the capacity sizes are the same, is the difference between them. And guess what, you might as well avoid this phone all together since it is just an overpriced phone if you want it under no contract.

  • iPod touch 8GB ($329) to the iPhone 3G 8GB ($719) – $390 difference!
  • iPod touch 16GB ($419) to the iPhone 3GS 16GB ($879) – $460 difference!
  • iPod touch 32GB ($549) to the iPhone 3GS 32GB ($1,040) – $491 difference!

OK, so Apple is basically saying that the phone bit is a high enough premium to pay for this. Well, no it’s not. If they both have the same OS, then they can use the same applications, and the voice ones can be used with a microphone on the iPod touch. There is no way I can actually afford that whatsoever.

Well, until the day after Thanksgiving, then it should be discounted – right?