Apple's location tracking system knows where you are

When it comes to Apple, you can run but you cannot hide. Changes to the Cupertino based-firm's privacy policy now allows location-tracking systems to collect data including the real time location of your "Apple computer or device" which presumably would include your iPhone. The new Location Services settings page allows some control over which of your apps uses geographical data, although  it is uncertain whether Apple will still be collecting data for its new iAd service. In its new privacy policy statement, Apple says that certain location-based services requires it to collect, use and share precise location data. As an example, the company notes that the "Find my iPhone" service on MobileMe requires Apple to know personal information for the service to work. The location data is anonymous in that it doesn't identify you, only your location.

Apple is also allowing iPhone users to opt out of receiving Apple-based ads that are highly relevant to "your interests". You can opt out of the iAd experience by going to this link. However, opting out will only prevent you from receiving ads based on your interests. The number of ads you will see on the phone will remain the same. You might still receive ads based on a web site you are visiting or based on non-personal information. Also, opting out of relevant ads will cover only those that come from Apple and will not affect mobile ads you might receive from other networks. Just remember though that the more ads you see, the less money is coming out of your pocket.

Apple iPhone 4 Specifications

source: SlashGear