I'm tempted to sneer at iPods too, but it's actually a pretty good choice for the gym. If you're worried about your $800 iPhone getting crushed, an iPod touch will record your lifts just as well; or an iPod Shuffle will clip on to your shirt for a long run through a bad neighborhood.

Also for kids where parents don't want to buy expensive contracts. Or even frugal adults who can just make all their calls through Hangouts/Skype and don't need a cell plan.