Apple CEO Steve Jobs announced major software updates for its iPhone and iPod Touch devices. iPhone users now can send SMS messages to multiple people and iPod Touch users get access to several applications that have been available on the iPhone: Mail, maps, stock quotes, notes and weather reports.
Most significantly, however, is the addition of a GPS-like positioning feature: Rather than using a GPS receiver, Apple consulted with Google and Skyhook Wireless to come up with a technology that uses triangular Wi-Fi and cellular beacon layouts to determine the location of a device. iPhone users will be able to take advantage of the new feature through the free iPhone software upgrade 1.1.3, while people who already have purchased an iPod Touch will have to shell out an extra $20 for the upgrade. All new iPod Touch devices will come with the positioning feature without extra cost.
News source: Toms Guide