My iOS app asks the user for location permissions because without it the remote control app won't know when to attempt to connect when you walk in the door with your iPhone but your remote is sitting at home, waiting for you to hit it to turn on your lights or play music on your Sonos. If you hit the button and nothing happens, that's a horrible user experience!
I used to have location set to Always even though I don't store the location (and I'm explicit about that, even going so far as to open source the entire app ecosystem[2]) but then Apple pushed back and said that always having a location was against their ToS for remotes. I then switched to a geofence, which is still a location based permission but takes less battery life.
For Apple the tradeoff was not privacy but battery life. If I were to store your geofence information on my servers (which, ick) that would be OK as long as it was in teeny tiny text in my privacy policy. So while other remote control products are happy to take that information and sell it I decided to not double dip since you already pay once for the product. This is similar to my news reader which also has competitors that sell users' data. The tradeoff for me is that I earn a lot less than I theoretically could, but again, I don't double dip. Benefits of indie technology vs. venture-backed technology.
[1] Turn Touch: https://turntouch.com
[2] iOS source code: https://github.com/samuelclay/turntouch-ios