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What factors can affect the GPS accuracy?

The accuracy of the GPS depends primarily on the number of visible satellites. Nearby buildings and large structures can interfere with GPS reception. Walls, vehicles, mountains and the like can also degrade performance. GPS accuracy will also improve over time, as it can take several minutes to obtain location information from all the satellites. The iPhone uses Assisted-GPS, so having a WiFi or cellular connection can greatly improve the initial location speed.