A “simple” GPS device like a Garmin has a map built in, with speed limits also attached to each stretch of road. So when you plug in a destination, the GPS analyzes the roads between you and your destination, and is able to calculate the time the various possible routes will take by basically dividing speed from distance.
When it comes to a “smart” GPS device like a phone running Google Maps… Google is collecting data from everybody’s phone, and it’s able to use this data to determine where there are traffic jams, and to adjust your ETA accordingly. (Famously, someone created a fake traffic jam by borrowing a hundred smartphones and wheeling them around on foot in a little red wagon.)
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