If you own an iPhone and haven’t heard already, Apple is storing every move you’ve made the first day you’ve used your iPhone. The file “consolidated.db” contains latitudes and longitudes about the moves you have made since you purchased your iPhone. The file lies unencrypted compressed with your iPhone backup. Every time you plug your iPhone for backup this file gets updated as well.
Many people are arguing that this is needed by many applications that needs your actual location to work properly, like your Maps and MobileMe,but this is far from true because those apps need your actual location, Maps does not need your location 1 year ago to tell you where to find the nearest ATM.
If you have your iPhone Jailbroken, BigBoss source released a fix to this. Tap into Cydia and download Untrackerd.
If you want to Jailbreak your device, follow my earlier posts.
If you want to look more into this, watch this video from O’Reilly.