The company explains in an FAQ, posted on its website,
that it is not stalking its iPhone customers, but is instead trying to
get more accurate location information. It also admits that there is a
bug in the software that is making the iPhone store too much
Logging and Storing Location Information
Researchers discovered that the iPhone has been logging and storing location information on users for the past year. The information is stored in an unencrypted file on the iPhone and also is backed up in an unencrypted form on computers running iTunes. The data is also sent to Apple.
The fact that Apple has been storing location information on consumer devices has caused an uproar in the privacy community. For a week, Apple has refused to comment on the situation. Now it's explaining its side of the story.
Apple said that it cannot track individual users with the location information that is sent to the company because it is sent to Apple in an anonymous and encrypted form. But the company did admit that it may be storing too much information about users' location. And it said it will soon fix this in a software release.