I'm going to keep track of the differences between the iPod touch 5th Generation and the iPhone 5. If you have something to add, please tell me. Processor The iPhone 5 has a new Apple A6 chip which has been touted as the fastest mobile device chip yet. It has 1 GB of RAM, 2 processor cores, and 3 graphics cores. The 5th generation iPod touch has an Apple A5 chip. This is presumably the 32nm chip Apple shipped with the $399 iPad 2 and the 1080p Apple TV. It has two processor cores, and 512 MB of RAM. Display The displays of both the iPhone 5 and the 5th generation iPod touch are 4" in size. They have a resolution of 1136x640 and are IPS displays. They also both have fingerprint resistant oliophobic coatings. Camera The Camera of the iPhone 5 is an 8 megapixel camera. It can also shoot 1080p video. It has an LED flash and a sapphire crystal lens cover. The camera of the 5th generation iPod touch is a 5 megapixel camera (as seen on the 3rd Generation iPad). It can also shoot 1080p video. It has an LED flash and a sapphire crystal lens cover. The front cameras of both the iPhone 5 and the 5th generation iPod touch are able to take 720p video. Networking Both devices have the capability for 802.11a/b/g/n WiFi at 2.4 and 5GHz as well as Bluetooth 4.0. The iPhone 5 also includes an LTE radio, a GSM radio, may include a CDMA radio (depending on carrier), as well as GPS and a compass. Extras The 5th generation iPod touch is 6.1mm thin, while the iPhone 5 is 7.6mm thin. The 5th generation iPod touch includes the iPod touch loop. Both devices include a Lightning to USB cable and Apple Earpods, and the iPhone 5 includes a USB Wall adapter. The iPhone 5 is available in Black & Slate or White & Silver. The 5th Generation iPod touch is available in Black & Slate, White & Silver, Blue, Yellow, Pink, and (PRODUCT) RED.