iPod touch not just an iPhone without the phone
iSuppli tore apart the iPod Touch. Turns out it's not just a broken iPhone. WIthout all the phone components to clutter things up, the Touch is thinner and has room for more memory. And, at $147 in parts per device, the iPod Touch costs Apple about $120 less to make. Then again, it doesn't reap the iPhone's service-fee kickbacks.