The iPod touch is an obvious choice for kids who aren't old enough for a smartphone but love to play games on their parents' phones. All but the least expensive model of the iPod touch has an iSight camera that is great for apps like Instagram. It's all the best features of the iPhone without the extra phone added to the data plan.
The iPod touch is also a good gift for those who refuse to give up their BlackBerry (BBRY) phone for one reason or another but who still want to try the latest apps and games. The iPod touch starts at $229; models that have the rear-facing camera start at $299.