Apple Stopped Supporting Carrier IQ in iOS 5, Complete Removal Coming in Future
In the wake of significant publicity about Carrier IQ, the mobile phone logging software that is able to transmit data back to carriers, Apple has now issued a statement to AllThingsD noting that the company stopped supporting Carrier IQ with iOS 5 on most of its products and that it will completely remove traces of the software in a future software update.
We stopped supporting CarrierIQ with iOS 5 in most of our products and will remove it completely in a future software update. With any diagnostic data sent to Apple, customers must actively opt-in to share this information, and if they do, the data is sent in an anonymous and encrypted form and does not include any personal information. We never recorded keystrokes, messages or any other personal information for diagnostic data and have no plans to ever do so.
Early evidence had suggested that Carrier IQ has been able to capture significantly more information, including keystrokes and other extremely sensitive information, on Android than on iOS.

Research into Carrier IQ's functionality on iOS has indicated that any transmission of information has been limited to phone call and location information, but Apple's statement today suggests that the company has even stopped using that information via Carrier IQ, although it does collect its own anonymized and encrypted information from devices unless users have turned off the diagnostics reporting functionality.
U.S. Senator Al Franken has requested that Carrier IQ explain just what information the software is recording and transmitting and how that information is shared with carriers and potentially other parties. Earlier this year, Franken spearheaded the government inquiry into location tracking concerns related to Apple's iOS and Google's Android platforms.
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