Crypto and Mobile Apps - A good way to go
Cryptography and its implementation in applications has always been a challenge for developers which even gets harder when it comes to mobile apps. OWASP mobile cheat sheet has highlighted broken cryptography as one of the top ten challenges which requires fair deal of attention from mobile app developers.
Mobile apps store data on devices and servers depending on the type of data they are dealing with and there is no harm in storing data on the device or even server so long as its properly encrypted and cannot be misused.
A simple and good way to go about managing this problem is to start using SQLCipher which is a security extension to SQLite database. It manages all the hard work of encryption and decryption at DB level with industry standard AES 256 algo.