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Because it fits in your hand and runs on a battery and is called a phone.

iPhone

As an aside, I was wondering what things does the iPhone 12 do that can even begin to tax all this horespower?

Right - 'one of the most powerful CPUs ever created was for a phone' sounds funny, so to get your head around it think instead 'one of the most powerful CPUs ever created was for a miniaturised 4k on-line editing suite and live broadcast system' and it doesn't sound so absurd anymore does it?

I assume there are some games that can utilize the power.

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