Sean Hollister from Engadget found an interesting article on LA Times, which explains how Apple can track your GPS. Once they have this information they can then use it to share your data with “partners and licensees”. iPhone users fear that Apple could sell this data, but Apple has said that they will only use the information anonymously.
That is not the only feature that has iPhone users worried, it looks as though the new ad network iAd will also keep an eye on your browsing habits. However, there is a way for you to turn this function off, just go to http://oo.apple.com where you can then turn off automated cookie collection.
We are not certain why people would want to hide their location, it is this feature that makes iPhone apps and other services that gives you a much better experience with your smartphone.