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The generic answer you can find at Apple support website About location precision or accuracy Depending on your device and available services, Location Services uses a combination of cellular, Wi-Fi, Bluetooth, and GPS to determine your location. If you're not within a clear line of sight to GPS satellites, your device can determine your location ...


It's the same accuracy as the GPS accuracy of the device. If the GPS on the iPhone can't obtain a good signal, it may use Wi-Fi triangulation which will reduce the accuracy. GPS accuracy may be decreased depending on the phone's environment (i.e. a tunnel would not have great GPS, but standing in an open field would).


I think I found the answer. Although Find iPhone app doesn't give any clue, this feature on does explain it: "The location of this Mac won't be updated because it has been erased.". Looks like the behaviour is part of the product design, rationale behind the design is unclear though.

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