Apples Wi-Fi only iOS devices have had location awareness for years via Wi-Fi location service that rely on identifying MAC addresses of nearby hotspots, and comparing those against a database of where those routers are located.
The location Im getting on my Wi-Fi only iPad is most certainly not this. It is clear I am being fed GPS information from the phone, at what appears to be an interval of once a minute or so between refreshes (likely they didnt do real time updating so as to go easy on the phones battery).
Although, one minute intervals isn't that often. It might be enough to sway some customers' purchasing decision towards the Wi-Fi iPad model instead of the 3G.
The feature can be seen demonstrated it the video below.
Read More [via 9to5Mac]