Location-Based Services (LBS) are the services that leverage a user's current physical location to provide an enhanced service or experience. Capability in mobile devices to provide such services represents a great opportunity for application developers to create compelling services that are widely used and highly valued. Location information can be used for a variety of purposes and there is plenty of room for entrepreneurial innovation.

According to Nokia, Applications that use LBS are limited only by developers' imagination, but there are some categories where needs and opportunities have been clearly identified:
- Mapping, navigation, and directions applications are the obvious targets for LBS, but developers who combine this capability with directory services and other offerings will be the long-term winners.
- Workforce-tracking and management applications may end up being the most lucrative applications because they will help enterprises optimize utilization of their people, supplies, and capital
equipment in the field. Industry segments include security, delivery, and service businesses.
- Entertainment and gaming applications can take the baton from the pioneering geo-cache enthusiasts and create interactive gaming experiences and services that complement sporting events,
concerts, and more.
- "Finder" applications can apply users'  locations to helping them locate anything from the closest restroom to friends in a crowd.
- Location-enhanced imaging applications can label captured multimedia with information about the location where the user recorded the file.
- Weather applications can provide local forecasts and warnings about inclement weather.
- Location-based reminder applications can prompt users when they reach particular locations, displaying, for example, a shopping list when a user gets close to a certain store.