Do contacts take up memory on an iPhone?

I'm considering getting an iPhone 4 or 4S soon. And with the release of the iPhone 5 possibly, these will go down to my price range. The iPhone 4 is cheapest in 8GB but when i was looking at the apps and music I have on my iPod touch, they take up about 11GB altogether so I'm going to have to sort things out onto an iPhone if i was to get one at 8GB.

But do contacts take up memory too?

Yes, I Have an Iphone and whenever I Plug it into Itunes it shows you a bar at the bottom with different colours and a key chart at the side saying what the different colours mean, and contacts is one of them, infact i think anything stored on the phone takes up memory, bear in mind that when you buy any apple product its preloaded with apps, so when i got my 8GB Iphone i had about 6GB Free space, and when i got my Ipod Classic because of the software and games already loaded including all the utilities (Clock, Timer, Converter ect) yet again i had a couple of GB's knocked off it. On my iphone i have got 10 pages of apps, 2 albums of music, about 80 contacts, thousands of photos and LOTS Of messages and i have quite a bit of space free, I'm telling you this so that if you are going to keep alot on your phone then maybe get a 16GB but i don't think anyone needs a 64GB but its their choice, Good Luck And I Hope Your Pleased With Apples Premier Products!