Example: my phone has both a Wifi and GPS chip. I open Maps and it tells me it can't give me navigation unless I turn on Location Services or whatever, which allows them to use the Wifi to scan for APs or whatever else they do.
It's 100% a lie, because any other GPS based navigation system (such as TomTom, Magellan GPS devices) can in fact do this; and they have far less CPU power than my phone does.