For that, we have to dig into Apple's privacy policy, something you accept every time you blindly click away Apple's terms and conditions. The policy was last updated on the 21st of June, 2010 -- the same day that Apple released iOS 4. Guess what? It talks a lot about collecting and using non-personal information, including location data. Here are a few choice paragraphs:
We also collect non-personal information − data in a form that does not permit direct association with any specific individual. We may collect, use, transfer, and disclose non-personal information for any purpose.
Apple then cites several examples:
We may collect information such as occupation, language, zip code, area code, unique device identifier, location, and the time zone where an Apple product is used so that we can better understand customer behavior and improve our products, services, and advertising.
The company later expounds on location services specifically:
To provide location-based services on Apple products, Apple and our partners and licensees may collect, use, and share precise location data, including the real-time geographic location of your Apple computer or device. This location data is collected anonymously in a form that does not personally identify you and is used by Apple and our partners and licensees to provide and improve location-based products and services. For example, we may share geographic location with application providers when you opt in to their location services.
Problem is, the location data is very personal and hardly anonymous because it's stored right on your phone -- the most personal device we own. The consolidated.db is also replicated (unencrypted by default) to any PC or Mac your iPhone syncs with, and subsequently any additional backup devices you might use (Windows Home Sever, Time Capsule, etc.).
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If this issue really concerns you, then there are a few things you can do right now to take control of your privacy. First, you can go into iTunes and start encrypting your iPhone and iPad backups. Second, you can purge the consolidated.db files sitting on your various hard disk drives. Lastly, if your device is jailbroken, you can install the free Untrackerd app to continuously clean the consolidated.db file. That should keep you busy while we wait for Apple to respond.
