BoyGeniusReport posts a screenshot from debugging menus in the 3.0 beta firmware which seems to confirm that Apple has built-in magnetometer (digital compass) support into the next operating system.
So the formula goes like ...
Magnetometer + GPS + accelerometer = you are going from HERE to THERE at SPEED x
The missing element still: B.Y.O.M. - bring your own maps.
Everybody’s free to develop GPS navigation applications for the iPhone now.
As long as everybody brings own maps.
Oh yes, we will ...!
At the last Apple event, Scott Forstall (SVP iPhone Software) announced turn-by-turn GPS would be coming for iPhone 3.0 -- with a little downer: due to licensing restrictions, Apple cannot pass on the right to use the built in Google Map (Tele Atlas) map
Tracked: May 11, 17:43