IPhone tracks users' movement
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With the right software, it can be used to map exactly where a person has been.
Apple has yet to comment on the revelation, however there is no suggestion that it has been uploading or using the information.
BBC news: http://www.bbc.co.uk/news/technology-13145562
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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.
From iTUNES STORE - TERMS AND CONDITIONS