The Xbox has a 733MHz CPU and a superior GPU. The iPhone has a 620MHz processor underclocked to 412 MHz and a 3D GPU that's really just there so that the iPhone has a 3D GPU.
The iPhone has twice as much RAM.
Naturally, it's a tradeoff. As the Xbox will be running ONLY games when it's running, while the iPhone will be running a number of additional things behind the scenes, I think it's safe to say the Xbox is far more powerful.
Whether that power is as easy to utilize as the iPhone's, though, is an entirely different story.
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