Will the iphone work as an ipod if i have no simcard and buy the iphone for $799

Activate the phone with a sim card then after that you can remove the sim and use the phone as an iPod.

ios decipher is right but you won't be able to activate it without a simcard.

Here's a similar question that might answer your question further https://discussions.apple.com/thread/4322756?start=0&tstart=0

Why not simply buy an iPod touch for $579 less?