The sad truth nowadays is that if you own a piece of technology, you should probably just automatically assume that it's storing everything you do. Gizmodo says:
If you have any decently modern Android phone, everything you do is being recorded by hidden software lurking inside. It even circumvents web encryption and grabs everything—including your passwords and Google queries.
Worse: it's the handset manufacturers and the carriers who—in the name of "making your user experience better"—install this software without any way for you to opt-out.
The very long video proving the existence of this hidden recording software can be found after the jump.