BoyGeniusReport posts a screenshot from debugging menus in the 3.0 beta firmware which seems to confirm that Apple has built-in magnetometer (digital compass) support into the operating system.

STMicroelectronics has announced a new MEMS-based module that integrates a three-axis magnetometer, a three-axis accelerometer, A/D converters, and control logic on a 2 mm x 2 mm x 1 mm surface mount ...

Apple will tap Japan's Asahi Kasei to provide hardware support for the "magnetometer" — or digital compass — that's slated to make its debut in the company's next-generation iPhone handset, ...

If you’re familiar with using a compass (the tool that points to magnetic north, not the one that makes circles) the concept of holding the device level makes sense. It must be level for the needle to ...