The privacy issue in smartphones isn't the freaking application processor running Android. Sure, that ones terrible enough.
But the actual problem is the baseband processor running completely non-free software, with an enormous attack surface and access to all the interesting periphery (GPS, microphone). There is not just opportunity to compromise your privacy, Qualcomm and others actively implement such features at the behest of governments and carriers.
Oh, and if you plug that enormous hole, you get to the SIM card, yet another processor that you have zero control over, but which has access to enough juicy data to compromise your privacy. I highly recommend everyone to watch a talk from 30C3 by Karsten Nohl, where he shows a live attack on an improperly configured SIM card that remotely implants a Java app on the SIM card which continuously sends your cell ID (your approximate location) to the attacker by short message (without notification to the application processor, e.g. Android or iOS):
http://www.youtube.com/watch?v=5B7XyVWgoxg
Carriers can do this today. (edit: that's a bit nonsensical, because carriers of course already know your cell id. Anyone with the ability to run a fake basestation momentarily (think IMSI catcher) can do this.)