A phone that advertises "GPS" has a GPS chipset in it. It's really that simple.

I suggest: http://electronics.howstuffworks.com/gps-phone.htm
for information.

There are a LOT of phones with GPS chipsets: Link to GPS Phones List

In terms of focus for GPS in phone devices, it's definitely for vehicle, on-road navigation.

In you really want to go deeper into this, I suggest you read iPhone vs. A Stick.