I'm thinking of buying an iPod touch 32GB, but I was thinking that I might buy an iPhone 4S instead. I like the idea of having Siri and the better camera. Is it possible to use an iPhone as an iPod touch without a data contract?
Yes, you can use an iPhone as an iPod touch. We've covered this in the past, and you can find the details of how to do that here. The only difference is that we are showing you how to do it on a device that has been upgraded, so it no longer has service.
Bypassing the carrier contract on a brand new iPhone 4S would require you to purchase what's known as an "unlocked" device. Unlocked devices aren't tied to any particular carrier, and because they aren't subsidized by any carrier means that you can use them with or without any wireless service, from any carrier you choose.

Unsubsidized iPhones are expensive…really expensive!
Unfortunately, that's where the problem lies: unlocked devices are unsubsidized by the carriers, making them extremely expensive. For the iPhone 4S, the prices range from $649 for the 16GB to $849 for the 64GB models. That's an expensive price to pay for Siri and a better camera.
Of course, there's even a slight chance that Apple may include Siri and a better camera in the next version of the iPod touch (new models usually come out in early-to-late fall), but then again, they didn't include Siri in the new iPad that came out earlier this year, so don't hold your breath.
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