While Apple has stated many times that the data collected by location services is encrypted to the point that only your device can make use of it, the point remains that it’s still collecting information on your whereabouts. And if you don’t like the idea of your phone acting as a tracking device, that’s understandable.
Some social media apps may also share generalized locations by default (i.e. your current city or town). This isn’t necessarily a problem as these details are usually not too specific, but could contribute to situations where strangers online know when you’re home and when you’re out of town.
Aside from the more obvious privacy reasons, another benefit to turning off location services is battery life. Since your iPhone is regularly collecting location data (and triangulating your approximate position via Bluetooth, GPS, and Wi-Fi), it requires more power than it would if it weren’t doing all of that. This probably isn’t as big a factor with newer iPhones that tend to hold a charge for much longer, but if you leave a lot of apps running or have an older iPhone with a less effective battery, turning off location services could make a noticeable difference.
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