Apple Inc was questioned that it is gathering information about the location of the users to provide a location based service and expand their database to tap this market.

"Apple is not tracking the location of your iPhone," the company said in a statement Wednesday. "Apple has never done so and has no plans to ever do so."

In response to worries about location tracking, Apple Inc said it would release a new software update that would cut the size of a wireless hotspot location database stored on its popular iPhones, and stop backing up that information.

The software will be released in the next few weeks, it