Your cellphone can identify your position in a variety of different ways
GPS is one
Another is you can triangulate your position with cell towers. Since the towers are at fixed locations, if you know how far away you are (which is easy to tell all you need is the current time) for 2 or more towers you can get a reasonably close fix on where you are.
The Google Earth survey also records the names of various wifi networks around a city. If you are within range of one Google can look it up in it’s database and identify your location that way.
It can also check your IP address. IP addresses belong to ISPs and are typically assigned geographically.
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