Do Iphones work without a phone plan?

Well I'm looking to buy an iphone from amazon or something. But if I buy it and don't use a "phone plan, or contract" whatever you'd like to call it. Just use it with Wi-Fi, will all the apps and functions work?
(I know texting and calling won't work.)
but other than that would it?
Sorry if this is confusing. Thanks.

Added (1). By the way, I know I could just get an Ipod but I know someone who is selling an Iphone for cheaper than an Ipod.

Yes it will work without a phone plan. But you can still text using iMessage on WI-FI but only with other apple products http://www.apple.com/.../messages/. I would recommend you buy a iPod Touch instead because it does everything you mentioned on doing.

Yes, but you just won't have the ability to call someone. And if you want internet, just connect to Wi-Fi. Yes all the apps would function and you get full access to the internet with Wi-Fi and no plan. And the iPhone will also work as well. Hope this helps. And for texting or calling get an app called Talkatone. Hope this helps again, thanks!

You can get the phone as pay as you go. But I'm not sure about not having 3g at all, sorry.
I would look into getting an iPhone for less than an iPod. It seems like a scam. That is quite ridiculous that an iPod is cheaper.

Yes you can use it as an ipod touch, but then why not just buy an ipod touch? You can still use all apps, imessage, facetime, etc

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