Your iPhone tracks you everywhere you go, and so do most phones these days. You knew that already. The reason this is a big story now is because it turns out that for the past 10 months Apple has been keeping your location data on a file in your iPhone itself where someone who knows how to get it, and has possession of your phone, could find it and figure out where you've been. For most people this is never going to be an issue, but for anyone
Source:
http://techcrunch.com/2011/04/21/apple-tracking-location-database/
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