Frank McPherson took a look at the revelation at O’Reilly Media’s Where 2.0 conference that Apple is storing data about each iPhone’s movements on the phone itself.
Based on the available information Frank speculated that: The location information being collected includes latitude and longitude, but it is not very precise suggesting the information is coming from cell towers rather than GPS. In fact, that means the latitude and longitude are most likely for the cell towers your phone connects to. . ..
Web designer Will Clarke took a close look at the data and confirmed Frank’s speculation that the location stored is that of the cell tower accessed by the iPhone and not the more precise GPS position.
Personally, I have a somewhat neutral stance on this topic until more information about why this data is stored and then backed up to partnered computers. I also suggest reading the original source of this information and considering the concluding statements Alasdair Allan and Pete Warden make there:
Don’t panic. As we discuss in the video, there’s no immediate harm that would seem to come from the availability of this data. Nor is there evidence to suggest this data is leaving your custody. But why this data is stored and how Apple intends to use it — or not — are important questions that need to be explored.