Apple and our partners and licensees may collect, use, and share precise location data, including the real-time geographic location of your Apple computer or device. This location data is collected anonymously in a form that doesn't personally identify you and is used by Apple and our partners and licensees to provide and improve location-based products and services. For e.g., we may share geographic location with application providers when you opt in to their location services.
Some location-based services offered by Apple, such as MobileMe "Find My iPhone" feature, require your personal information for the feature to work.
Although users are able to manage location in their settings (see graphic below from iPad settings) and not allow 3rd-party apps to use location, Apple's still collecting that information for its own purposes.