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MSNBCOn Wednesday morning, the electronics giant put out a press release with answers to 10 frequently asked questions regarding the location data tracking issue. The information provided in the press release answers most of the questions posed by Sen. Al Franken, D-Minn., who recently called for a hearing of the Judiciary Subcommittee on Privacy, Technology and the Law in order to discuss these and other mobile privacy concerns.
Apple essentially denies that it is tracking — or that it will ever track — the location of a customer's iPhone. Instead it explains that it is simply "maintaining a database of Wi-Fi hotspots and cell towers around your current location" in order to "help your iPhone rapidly and accurately calculate its location when requested."
This means that any location-related data — which by most people's definitions would in fact include a database of nearby Wi-Fi hotspots and cell towers — should not be logged on a device, especially in an unencrypted form.
There's an explanation for that logging as well though. According to Apple, it's just a bug. The electronics giant explains that the iPhone's tendency to store location data will be reduced by an upcoming update of the iOS software. The major iOS release after that will include an encryption feature for the supposedly smaller data cache.
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http://technolog.msnbc.msn.com/_news/2011/04/27/6541918-apple-officially-responds-to-iphone-tracking-questions