iPhone always tracking your location, even with location services off?

I decided to run a few experiments on an iPhone around location services. The conclusion it seems is that Apple is still tracking your locations, even if you turn off location services. It must somehow do that through cell data and not through cellular triangulation.

Any thoughts about the experiment below?

Experiments (each repeated several times):

* Locations Services off: iPhone fully functional, and Location services off. After I travel several miles to a new location, I turn back on …

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