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Perhaps it's time to disrupt the world of compass physics by inventing one that doesn't get influenced by other magnetized objects?

Because that's the only way you'll fix that.

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It's only the electronic compasses in mobile devices that are garbage. I've experimented with holding a regular small mechanical compass in one hand and a cell phone in the other. The mechanical compass is steady and accurate whereas the cell phone compass jumps all around. It's just poor design.

Sure, but that's because the compass in your phone is smaller than your nail is thick. Which obviously makes is significantly more sensitive to any disruption.

How would you design it better?

You can design a separate compass transmitting data to the smartphone. There's many people who could trade $50 and some additional weight in their bags for accuracy.

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