We’ve seen all kinds of rumors, sometimes, we publish them because they might have a hint of truth, but we’re publishing this one because it seems ridiculous:
“Tonight, based on a recent informal conversation my Dad had with his friend's wife who works at Apple, he told me the next iPhone is likely to have GPS. Usually, my Dad's friend's wife doesn't let Apple product info slip out until right before a new product announcement is made. This being the case, I'm betting GPS will be included with the 3G iPhone... and soon"
That was the good old “a friend of a friend told me…”. Note that the iPhone might very well have a GPS (we think it will). Others have speculated that Broadcom might be the chip. If that’s the case, we think that it may be the Broadcom BCM4750 G-GPS chip. At 35 square millimeters (total solution), it is certainly small enough to fit in.
Source...

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