Even when location services are not enabled, your iPhone will still collect and store location data, according to a test run by the Wall Street Journal.
The recent revelation that iPhones were collecting precise location data, and storing that data for up to a year in an unencrypted file, has sparked concern among users, as well as from Senator Al Franken and Representative Ed Markey, who have demanded Steve Jobs explain what the data is used for.
The Wall Street Journal's test showed that the iPhone used cellphone towers and Wi-Fi access to find this location data, though it did not appear to be transmitted back to Apple. The test observed the data recorded by the phone as it moved from place to place, and found that these moves were recorded, using coordinates and time stamps. Google performs a similar operation regarding users' location data on phones using its Android software.Wallstreet Journal
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