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Update, 4/27/11 - Apple has posted a response to questions raised in this report and others. Today at Where 2.0 Pete Warden and I will announce the discovery that your iPhone, and your 3G iPad, is regularly recording the position of your device into a hidden file.
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Apple is recording your moves - http://goo.gl/S7OuO. This is a surprise, why?!?

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