How does the iphone locate itself?

I haven't found a website that finds an ip address location as good at the iphone/itouch built in locator and i wanted to know how that works or a website that locates an ip address as accurate as the iphone/itouch.

IPhone uses GPS and not the IP address.http://www.apple.com/iphone/iphone-3gs/maps-compass.html

IPhone is using GSM cell data and GPS receiver data to locate itself.

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