Are outgoing and incoming text messages saved on the iphone?

It really depends on what you mean by saving your text messages on your iPhone. For right now, when you text or when someone else texts you, the messages are on your iPhone in a threaded conversation, kind of like IM. So to that degree, they are "saved" on your iPhone.

The only way that you get them off is to manually delete them. Once you do this, the messages are gone forever. If you want to back them up to your computer, then there are numerous software out there that can do that for you, depending on the type of OS you are running.

Hope this helps, let me know if you need more clarification.

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