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The Touch/iPhone aren't full PDAs. They're media players that can run some programs. But they're limited by design--a keep-it-simple philosophy to avoid intimidating users. And that limits what programs can do. Multitasking is a big lack in the Touch/iPhone. Another big problem is Apple's strict control of what programs you can put on it--if you want to replace a built-in app with one more to your liking, no go. Ditto language support: unlike Windows Mobile, the iPhone has built-in support for a lot of languages, but for many of those it's rudimentary, and without multitasking you can't add a separate program with better support for the language of your choice, as you can with WM (though for many that's not an issue; I'm studying Japanese, so for me the better support I can add to my Axim is a huge advantage). Another big thing is the much less precise touch screen in the Apple--many people prefer using their fingers, but if you do anything that requires precise input, the Apple screen is a pain because it requires either a fingertip or a very broad stylus to use--no fine input as in a WM screen with stylus (again, if you don't need precise input, say for a lot of writing, not an issue, and you may prefer the more finger-friendly Apple screen). Removeable battery means not only that you can replace the battery instantly when it goes bad in a year or two (iPods have a bad reputation this way), but that you can carry a couple of charged matchbook-sized spares to keep going for as long as you like away from power. With the larger memory in the new iPhone, the ability to add memory cards to the Axim is less of an advantage (still, the current max you can install in an Axim with WM6 is 64 GB, and you can of course swap out the memory cards to carry even more data with you, say a card or two for video and a card or two for audio, GPS maps, etc.). The Axim doesn't have built-in GPS, but if you add a separate Bluetooth GPS and maps stored on a memory card, it'll have more accurate GPS reception than the iPhone/Touch AND you won't have to wait for maps to download from the internet as you go (I've seen iPhone screens go blank for 6-7 minutes while waiting for maps to load as I drove in weak-signal areas--and if you're out of 3G range, meaning most anywhere in the boonies, of course those maps won't load at all [so don't expect to use your iPhone to get around in the wilderness]).
All that said, if the iPhone does everything you need, it probably does it better than WM, just because the interface is so good. If you don't know exactly what you need or what you'll be doing, though, get the Axim. As a full PDA it's simply much more capable and flexible, and there'll be no chance of wanting to do something and finding out you simply can't. The interface isn't as sleek, but it doesn't take more than a few minutes to figure out, and once you do it's just as easy to use (easier, actually, since you can reconfigure the menus and customize the interface more than in the iPhone).
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