What is the difference between iPod touch and iPhone 5?

They both look like mobile phones? With
same ios 6.same processor? I think display
is different and calling?

The one with phone in its name, is a phone

IPod Touch (5G) has 512 MBs system RAM, iPhone 5 has 1024 MBs system RAM
iPod Touch (5G) has an A5 SoC (from 2011), iPhone 5 has an A6 SoC (from 2012).
The A6 is over twice as fast as the A5 -- http://browser.primatelabs.com/ios-benchmarks

iPod Touch (5G-32GB) has a 5MP camera, iPhone 5 has an 8MP camera
[The iPod Touch 5G-16GB does NOT have a rear facing camera]
http://www.apple.com/...specs.html

The iPod Touch is slightly thinner (0.24 inches) than the iPhone 5 (0.3 inches).

The iPod Touch does not have the Cellular Phone, Compass or GPS features that are found in the iPhone 5.

The iPod Touch has a cheaper home button than the one on the iPhone 5, meaning it will wear out faster.

More substantial build quality on the iPhone 5.

There are probably a variety of minor features differences between the products (the iPod Touch comes in pretty colors!), and maybe a major one I forgot.

You might have heard of rumors for a cheaper iPhone coming out within the next few months