Joey Hess over at PreCentral.net caused a bit of a stir last week as they detailed how the Palm Pre reports users location data back to Palm HQ.

Although we haven’t found an application by Apple that actually tracks your location, there are a number of free applications available in the AppStore that are designed for that purpose. There’s a gimmicky app that allows you to determine the tip for your waiter just by tilting the phone as you pass it round the table, if you dig a little further you’ll discover it actually uses a library by Pinch Media that is designed to track your location through time and then upload the information to Pinch Media.

Apparently the iPhone will ask you first before any app is allowed to use your location data, but it keeps on asking so much so that must users will just agree to stop the annoying questions that continue to pop up. For more information visit theiphoneblog.com