After some furious words were exchanged on various tech sites, blogs and conversations, Apple have finally addressed their very controversial tracking function for it's mobile iOS-based devices with a simple software update. iOS 4.3.3 for GSM iPhone 4, 3GS, iPads and fourth-generation iPod touch, as well as iOS 4.2.8 for the CDMA-equipped iPhone 4. The new iOS update does not completely remove the feature (surprising!), it simply trims its functionality down.
Looking at the notes from the update, iOS 4.3.3 shrinks the size of the location database cache - no one is sure of just how much, we're just going by what Apple have said. Apple have started it doesn't believe the iPhone needs more than seven days of location data stored. In comparison, some users have reported that their device has logged an entire year's worth of location data.
Additionally, this new update stops the location data from being backed up through iTunes which you connect your device to a computer, the cache will be deleted when you disable Location Services.