New iPhone 3G to Come with GPS

Before we talk about the new iPhone 3G with GPS, we will acknowledge right now that many, many, many current cell phones on the market have GPS capabilities. However, we’ll also point out that millions of people will most likely opt for the next iPhone, which goes on sale July 11, over all those other cell phones combined.

What we found out today is that the new iPhone will have built-in GPS that will allow for live tracking; it won’t rely solely on cell phone tower and Wi-Fi locations for triangulation, like the current model does. The iPhone GPS will use Google Maps and feature live traffic information that can be switched from map to satellite view, or a hybrid of both. Users can also look up nearby points of interest. And of course you can get turn-by-turn directions with tracking that updates your position like a typical GPS unit. There was no mention of voice/dictated directions, but we doubt that will be a feature at launch.

Assuming the Apple site isn’t overflowing with traffic, you can watch a video demonstration of the GPS feature here. The iPhone 3G will go on sale at a starting price of $199, meaning it’ll be about the same price as the cheapest aftermarket GPS unit currently for sale — plus, you know, it’s an iPhone, too.

What do you think? Will the iPhone put aftermarket GPS units out of business?