The iPhone has an internal compass, apart from the AGPS.
http://theiphonewiki.com/wiki/index.php?title=Compass

The text you found describes how to obtain a pseudo-compass heading.

/Mogens

On 12-05-2011 12:43, Thoern wrote:
Aha
I found a page that seems to explain the iphone compass

"Given that we know our position, in latitude and longitude, it's
possible to calculate this Magnetic Declination. It can vary from 0 to
30 degrees here in North America. So, knowing the direction that a
magnetic compass points to, there is a calculation that tells you the
offset, East or West, and the angle to correct, to obtain True
Geographic North.
"
http://www.ipodobserver.com/ipo/article/exploring_the_compass_app_in_the_iphone_3gs1/



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