During his two-hour morning bike ride, Eric Hartman doesn't pay much attention to his iPhone.
But the iPhone is paying attention to him.
As he traverses the 30-mile circuit around Seal Beach, Hartman's iPhone knows precisely where he is at every moment, and keeps a record of his whereabouts. That data is beamed to Apple Inc. multiple times each day, whether Hartman is using his phone to take pictures, search for gas stations or check the weather.
And it's not just the iPhone that's keeping track.
Buying milk at Ralphs? Playing World of Warcraft? Texting dinner plans to friends? Watching an episode of "Glee"? It's all recorded.
Over the course...