Squeezes it down to size. Just like how it stretches stuff up to size when something lower resolution is played. It would stand no chance playing things back otherwise, because Apple mobile device resolutions are really nonstandard.
The big boy word for squeezing is filtering, and the big boy word for stretching is interpolation. There are several approaches, all with their own big boy names, like bilinear, nearest neighbor and so on. A general name would be scaling or (re)sampling. It’s just math, if you want to learn more, search for the formulas on Wikipedia or algorithm walk-throughs on YouTube.
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