As per the report Google and Apple are trying to collect location information of their phone users to build massive and specific database capable of targeting individual users via their cell phones, that eventually help them to provide location based services which has a market of $2.9 billion and expected to rise $ 8.3 billion in 2014 according to research firm Gartner Inc.

In case of Google," An HTC android phone collects user information several times in an hour and transmit it to Google, which also includes Name Location, Signal Strength of nearby Wi-Fi as well as a unique phone identifier" says security analyst Samy Kamkar. Company declined to respond against findings.

Until last year Google was collecting similar data with StreetView cars that map and photograph streets world-wide, but it stopped StreetView Wi-Fi after it inadvertently collected email passwords and other personal information.

Apple said it collects data intermittently and transmit them back to apple after every 12 hours, according to a letter from the company sent last year to US Reps.

Last year there was a finding by a journal that some of the apps on the phone uses location services and transmit to third party with out consent or knowledge of a user.

This time Apple comes under fire after a finding that iPhones store unencrypted database containing location information last for several months.

Although Apple Inc and Google Inc previously have disclosed that they use location data, in part, to build giant databases of Internet WI-Fi hotspots. That data can be used to pinpoint the location of people using Wi-Fi connections.

As there are many reasons to collect location information like local business look up or social network or traffic information etc, but it has seriously raised a question about privacy of a user. ( Source WSJ)