The company will be able to use this data to target users with specialised products and services, based on their immediate location.
Users downloading music, movies and applications for Apple's new iOS 4 were asked to agree to the modified privacy rules imposed by Apple, allowing the company to share users' location with its partners and licensees to provide location based services, content and advertising.
The company assured users that the location data it plans to collect will not affect their privacy, as it was completely anonymous and could not be used to identity specific individuals.
Apple explained: “Some location-based services offered by Apple, such as the MobileMe 'Find my iPhone' feature, require your personal information for the feature to work.”
The company also promised that those who wish to stop sharing their location can do so by accessing the Location Services tab under the General menu settings.