SIP phone is a type of telephone that can be used to make calls on the PSTN networks as well as on the VoIP technology. The modern ones have many features and can even be used for teleconferencing. Here is more information about it.
The modern SIP phone is used to make calls on the VoIP technology but at the same time, it can also be used to make calls on the PSTN networks. Today, these phones come with advanced features like LCD display, audio clarity, power over Ethernet installation and Ethernet ports.
SIP basically means Session Initiation Protocol. Therefore an SIP phone is one that utilizes such a protocol in its operation. A protocol is simply a computer language that is well understood by programmers.