Huge rumor. No corroboration. Not journalism. Posting this from a first time, antonymous tipster and if it doesn't pan out... well... I'll be boiled in clam chowder eventually anyway... But it's Friday and this is FUN. Of course, Dieter already told us about the complicated legal quagmire surrounding turn-by-turn GPS, but dagnabit, we wants it!

Apple has begun quietly demonstrating an internally developed iPhone GPS Navigator program that includes turn-by-turn, 3d views etc. Visually, it is very similar to Tom-Tom, but with the expected Apple eye candy. They were sketchy about the details, but it seem that this will not be part of the core software (I.E. they intend to charge for it). It was also unclear whether they were using cellular-based data to share traffic information, but some of the screens seemed to indicate that it would.

Our nameless could be friend -- might be prankster -- says this will be released after 2.2, but in time for the holidays.

Are we getting played? Or is this happening? Again -- not news, not reliable leakage, but pure rumormongering at its most unsubstantiated. Take it for what that's worth.