How your phone turns four timestamps into a location.
GPS satellites orbit at about 20,180 km and constantly broadcast their position and the exact time. Your receiver measures how long each signal took and converts that into distances using the speed of light. Three distances would fix a point, but the cheap phone clock is wrong. A fourth satellite supplies the unknown for the clock error. Accuracy: a few metres.
Useful: If your phone sees fewer than four satellites, say between tall buildings, the position jumps around.
Source: en.wikipedia.org