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Cellphone towers relay the location - thats why.

http://en.wikipedia.org/wiki/Assisted_GPS

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Also it was purple a few moments ago. I disabled all location services except that one and you'd be surprised how often I see the triangle show up in my status bar at random times. It uses the GPS and drains the battery.

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Odd suggestion but what time zone is your phone set to?

Actually, correction from the above. In settings -> general -> date & time I have it set to auto and it puts me in New York.

However in settings -> privacy -> location services -> system services I have setting time zone via GPS disabled.

I almost forgot there were two separate settings there. The former uses network tower information (I assume), the latter uses GPS in the absence of a network signal (also an assumption. I really don't know) but in reality the latter uses the GPS quite frequently regardless of where I am or what I'm doing with my phone.

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Edit: If you're not a developter why do you have it?

Because I love technology and gadgets and iPhones and Apple! I've always tested beta OSes going back to Windows 98. ;) Sometimes officially and sometimes unofficially.

I don't complain when things go wrong, but I do share information with the developer through the provided channels if possible and with other testers.

I was just surprised that there's a bug with something as simple as an alarm clock program!

And as we all know it's not the first time Apple had problems with the iOS clock app.
 
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Also it was purple a few moments ago. I disabled all location services except that one and you'd be surprised how often I see the triangle show up in my status bar at random times. It uses the GPS and drains the battery.

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Actually, correction from the above. In settings -> general -> date & time I have it set to auto and it puts me in New York.

However in settings -> privacy -> location services -> system services I have setting time zone via GPS disabled.

I almost forgot there were two separate settings there. The former uses network tower information (I assume), the latter uses GPS in the absence of a network signal (also an assumption. I really don't know) but in reality the latter uses the GPS quite frequently regardless of where I am or what I'm doing with my phone.

ImageImage

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Because I love technology and gadgets and iPhones and Apple! I've always tested beta OSes going back to Windows 98. ;) Sometimes officially and sometimes unofficially.

I don't complain when things go wrong, but I do share information with the developer through the provided channels if possible and with other testers.

I was just surprised that there's a bug with something as simple as an alarm clock program!

And as we all know it's not the first time Apple had problems with the iOS clock app.

I think you misunderstand. Location Services doesn't always mean GPS, that's the point someone else was trying to make. Anyway of finding your location - cell towers, wifi, etc. are Location Services. It doesn't break it down to GPS and other forms.
 
I've lost five pounds this week all due to my iPhone alarm not reliably telling me to eat.

Curse, bug, or blessing?
 
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