A literal IC chip in the phone is a “compass” that sends a signal to the software about which direction the phone is facing, moving the phone even slightly gets the software to figure out which direction you are heading. Between this info and the gps signal it gets things sorted out showing correctly.
This is why it often takes a few seconds when you open it for it to figure out where exactly you are and which way to head and the map spins around a bit.
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