Apple made a low-powered network that lets all Apple devices talk to each other when they’re in close proximity. It doesn’t compromise anyone’s data or anything, it’s just devices acknowledging other devices nearby and exchanging basic identifiers and GPS coordinates.
So an AirTag can report its location to any other Apple device that comes into range which then relays that information to the Apple servers where it can be viewed by the owner.
That’s why they can go so long with a small battery and also be so accurate without a large antenna or anything like that.
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