First question many people have is "Why is apply tracking the location of my iPhone". Apples official answer is that it does not track the location of your iPhone and has no plans to ever do so.
Apple says that it uses the tracking to store were good wireless hot spots are so that it can find you faster when using the map program. They have however said that the phones ability to save up to a year of tracked data is a bug and that in a new patch that will be limited to one week of stored data.
I for one am glad that our apple overlords are not tracking our every-move just to find out what our favorite places to hang out.
Another thought is that maybe Apple has hinted that apply is collecting anonymous traffic data to build a traffic database to provide iPhone users an improved traffic service.
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