IPhone Features and issues on iPhone Location Data
Latest iPhone available so far is the iPhone 4 (the iPhone 4S will only be available on the 14th). It has quite a lot of significant features compared to other high end smart phones. There's the Retina display with approximately 330 pixels per inch density. This makes the screen look really clear and smooth compared to others. It features a 5MP camera with LED flash that has an autofocus capability and can record HD videos at 720p. There's also a second front side camera for video calling using Facetime over WiFi, speaking of Facetime, which is also another new feature in the iPhone 4. Then there's the addition of the gyroscope which allows the iPhone 4 to detect movements and angles in a very precise manner which should especially make gaming an awesome experience.
The iPhone asks for location data because this is a feature embedded in some of its apps. This does not really store your current location's information but instead maps the location of WiFi hotspots and cell towers around your current location. This helps determine its location when requested by the user, i. e. trying to get location through GPS where access to the GPS satellites is difficult.