The iPhone Can Do Much More
iOS is shared between the iPhone and the iPod, so they look very similar. However, the iPhone can connect to cellular networks, which is a much more significant difference than it may first appear. The cellular connection allows you or your child to make calls (of course); however, cell data also allows for an internet connection away from Wi-Fi connectivity, which is a big benefit if you or your child needs a music player for the car or elsewhere. It also allows them to stream YouTube on the road if you have an unlimited data plan. The iPod simply can’t do that.