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Any other major difference between iPhone and iPod Touch except telephone function?

Short answer: Touch is not a cell-phone.

I'm looking for long answer because I don't really get why iPhone is like 2x more expensive than Touch?

P.S. I'm comparing iPhone 32 GiB (4th generation) with iPod Touch 32 GiB (4th generation). Newest models with the same capacity of memory.

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Well, some of the costs come from the GSM components that the iPhone has, others come from the production process, which is different.

Then there is the amount of RAM is 512 MB for iPhone and 256 MB for the iPod Touch. Also, the iPhone has a compass. The rear cameras are different - 5 Megapixel camera for the iPhone and 0,7 Megapixel for the iPod.

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    Also, the iPhone has a higher quality screen than the iPod Touch -- brighter, with better visibility from angled views. – Mike Scott Jul 30 '11 at 9:16
  • Exactly what I was looking for. I think I will have a new phone. :) – daGrevis Jul 30 '11 at 9:17
  • I was under the impression that the 4th generation iPod Touch used exactly the same screen as the iPhone 4, I've definitely not noticed any differences between them. – andynormancx Jul 30 '11 at 9:46
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    The iPod touch is a retina display as far as the pixel count goes but it doesn't include IPS technology which gives the iPhone 4 better viewing angles. – Nate Bird Jul 30 '11 at 17:29
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The main reason that the iPhone is twice as expensive as the iPod Touch is nothing to do with what is inside either device. The price difference is mainly down to how they are sold.

Most iPhone are sold with an associated mobile contract. For some reason people are willing to pay more for a device if the payments for it are spread over a couple of years built into their phone contract. So a significant chunk of the extra cost of the iPhone comes down to the fact that that is simply the cost that people are willing to pay for it.

The iPod Touch in comparison is not "subsidised" in the way that most iPhones that are sold are (it is a very odd definition of subsidised that the mobile carriers have).

That isn't to say that the extra components, software and regulatory issues around the iPhone don't add some cost.

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