The iPhone uses A-GPS technology (A means "help"), so the cellular network and Wi-Fi networks help the GPS chip determine your location. Depending on your location, this can lead to more precise triangulation of your position.
While iPod touch cannot use GPS satellites or cell towers to determine your location, it can use Wi-Fi, so your iPod touch knows where you are.
As for the CoreLocation APIs, there shouldn't be a difference between devices, however the accuracy is likely to be lower and less consistent on iPod Touch.
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