Because there’s no point in sharing a WiFi connection from one iPhone to another. If one of the iPhones is connected to a router then the 2nd iPhone should have no problem in connecting to the same router. Why tether the WiFi connection through an iPhone when you can connect your iPhone directly to the same WiFi router? Cellular data means that one of the iPhones is directly connected to the internet via the mobile network but the 2nd iPhone maybe ran out of data or his carrier doesn’t have strong signal in the area so you share the data connection.
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