Even before the launch of the iPhone next month, a new rumour claims Apple will add GPS to the second-generation of its handset.

The report claims the new version iPhone will incorporate a SiRF Star III chip, a component that helps GPS-enabled devices quickly figure out where they are.

These revelations appear as US customers anxiously look forward to the June launch of the product. Anaysts are presently predicting demand for the iPhone will exceed supply when the device ships, with some AT&T shops hosting waiting lists, while others plan to offer iPhones on a first-come, first-served basis.

Expectation remains high in Europe and the UK, where almost half of iPod users would consider an iPhone as their next mobile, according to a recent Canalys survey. Another recent poll revealed that 25 per cent of iPod users would switch network just to get their hands on an iPhone.