Sure it does. The iPhone is less expensive than an iPod touch ($199 vs. $260 CAD). I already have a cellphone, so it's not like it's an added expense. I put the iPhone on the monthly cell plan I already had. Now I have a neat cellphone, iPod, PDA, and wifi device.
um the iphone is NOT cheaper than an ipod touch. the 199$ price point for an iphone is clearly subsidized in exchange for 2-3 year long contracts.