Apple has finally broken their silence regarding the location-tracking database scandal with the iPhones and 3G iPads which were running iOS 4 or newer. Apple has stated that never have and never will track iOS 4 devices. Apples purpose for the database file in question (consolidated.db) is to “help your iPhone rapidly and accurately calculate its location when requested.” The next iOS 4 release will "limit the size of the database file" to limit the historical information as it is not necessary in calculating your current location.
Apple's promised iOS firmware update, due “sometime in the next few weeks”, that will also encrypt the location data file on your device. In limiting the historical information stored in the database, Apple stated: “reduce the size of the crowd-sourced Wi-Fi hotspot and cell tower database cached on the iPhone, ceases backing up this cache, and deletes this cache entirely when Location Services is turned off”.
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