When I can’t do what I want with my phone, I may as well be leasing it. Hmmm.
But I don’t believe Apple’s business model is to spy on me.
"Location-Based Apple Ads: Your iPhone will send your location to Apple in order to provide you with geographically relevant ads on Apple News and in the App Store."
More: https://support.apple.com/en-us/HT207056
So not exactly "business model", but does it matter?
Apple business is not spying on you, but Apple business is much easier to do if they do spy on you. Meaning they do it anyway, don't worry.
It's impossible to use an iPhone with any popular apps and not be constantly spied on. Insofar as Apple's business model is to make the (full of spyware) App Store successful, it's Apple's business model to spy on you.