Many iPhone users are asking how the new Maps with Location feature works on their iPhones. iPhones do not come with a GPS unit built into their system so how does the new Locator button work on the iPhone?
The new Locator button works through the collaboration of Google and Skyhook Wireless. Google uses cell phone towers in your immediate area to triangulate your location. This information is then cross referenced by Skyhook Wireless. Skyhook Wireless has driven around the US and Canada marking WiFi hot spots. These hot spots give off beacons that are picked up by the iPhone even if it is not connected to them. The cross referenced information is then fed through Google Maps displaying a small circle on the map with your location.
This location can then be used as a starting point to received directions elsewhere through Google Maps. This system also works for pin pointing locations you wish to remember. On your Google Map, simply drop a pin on the location of your favorite restaurant, shop or friends house and you have the location saved for future use. The collaboration of Skyhook Wireless, Google, and Apple to bring Maps with Locations to the iPhone.