I can't get GPS location when creating portable WiFi hotspot through my device. Its running on Android 2.3.7. Basically my app fetches the GPS location of the device and sends it to a server(in LAN). To simulate this condition, I created a LAN with my mobile and Laptop(acts as server). Hotspot is created through the mobile. It used to work if LAN is created by some other means, connectifiy or Router connection. Except a hotspot. I want to know if hotspot clashes with the GPS receiver. I seriously doubt it though.
If you are using LocationClient then in that case location is fetched using GPS,Wifi or Cell ID..Now if you make your device as a Wifi Hotspot then it might happen that your device will look to fetch location using GPS. And if you happen to be indoors then there is a remote possibility of getting location.Hope this answers your question