The word is there’s quite a bit of concern over the location tracking issue with the iPhone and Apple iPad, something Apple says is a bug and they are not tracking users, and has thus released a statement on the matter.
According to Apple Insider, in a Q&A style release Apple apparently stated that with devices such as the iPhone, complex tech issues are “hard to communicate in a soundbite,” and has also said they are to release a free update to iOS to address the location bug.
That iOS update should be released sometime in the next few weeks and will cease backing up the cache, delete the cache entirely when location services are turned off, and reduces the size of the crowd-sourced WiFi hotspot and cellular tower database cached on the iPhone
Apple says that they are not tracking location on the iPhone, have never done so and have no plans to ever do so. For the complete Q&A release by Apple you can hit up Apple Insider.