Don't know what to say. With H8, my compass always points north with the phone flat, vertical portrait, vertical landscape, 45 degree portrait, 45 degree landscape. Tested with "GPS Status" by reading digital heading indicator. If I get near a large metal object (such as a filing cabinet) or near a computer, it deviates.
I have not confirmed, but I imagine because every similar device has it, that the Galaxy has a 3 axis accelerometer and a 3 axis compass. This allows the device to determine which way is down, and which way the magnetic field lines point. Combining your GPS position allows for a true north correction.
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