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As I wrote earlier, the new iPhone does a good job at pinpointing your location on Google Maps within, oh, a third of a city block or so, especially if you're outside under a clear sky. (Indoors, the iPhone must rely on Wi-Fi signals or cell tower triangulation, so the "current position" crosshairs may encompass dozens of blocks.) If the GPS sensors get a solid fix, the crosshairs turn into a blue, pulsating dot that follows you as you walk or drive. In my outdoor tests, the iPhone 3G's GPS got a good fix on me within about 15-20 seconds—not bad.
It's a cool feature if you're looking for the nearest Starbucks or ATM, but as a substitute for a dashboard GPS system, the iPhone's GPS capabilities fall well short. Yes, the iPhone 3G will deliver point-to-point driving directions (as will the old iPhone), but it won't guide you though the list of directions as you pass by specific waypoints. Indeed, unless you tap your way to the next step, your little blue progress dot will inch right off the map. There's also no re-routing if you make a wrong turn (unless you call up a new set of directions manually), and the iPhone map doesn't rotate depending on which direction you're facing, which can get confusing when you're trying to make that next left turn.
Now, there's no reason some enterprising developer couldn't come up with better navigation software for the iPhone 3G—in fact, I'd be surprised if we didn’t see such an offering on the App Store within the next several months. As it stands, however, Google Maps with GPS on the iPhone feels half-finished, especially compared to Verizon Wireless' polished VZ Navigator or Sprint's Navigation app.
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2. From CNET
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GPS
While the current iPhone location services find your position by triangulating among nearby cell phone towers and satellites, the iPhone 3G uses Assisted GPS supplemented by satellites, which better pinpoints your location. It also offers live tracking so that you can monitor your progress as you drive (or walk) along. We'll expand more on the tracking feature as we test it. Even with these additions, however, the iPhone's GPS features can't compete with standalone GPS devices. Google Maps provide point-to-point directions on the iPhone 3G, but the phone doesn't support turn-by-turn directions in real time, and it's unclear whether that capability will come later from third-party applications. Apple's SDK prohibits location-based services "designed or marketed for real-time route guidance," but that doesn't mean we'll never see them.
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3. From Electronista