The iPhone 3G starts at $199. The iPod touch starts at $299. Heck if I can get an iPhone for $199 that also includes GPS, a microphone, a speaker, and a camera why shouldn't I get an iPhone without service? The answer is you can't! So then can't I just get like 700 minutes and unlimited data for $50 a month? Nope, try $70! Also, if you are a talkative person and need unlimited minutes they AT&T will soak $120 a month from you! Well then, why does the iPhone cost one hundred bucks less? They use practically the same parts, the iPhone even uses more parts. The answer is in the 2-year service agreement where they know that they can get fees from you. You know how you see ads for cell-phones that are free with 2-year agreement. Well, how much does a 600 dollar iPhone cost with 2-year agreement? You guessed it $199! So, the only way you could see a large price drop in the iPod touch is if you had a 2-year agreement on it!Please Register or Log in to view images Also if someone can please prove me wrong I would love that, because I want to sell my iTouch for $300 now and get a new one for the same price that has upgrades. Also, if someone already said this I am sorry and am new to this forum.