Why doesn't Android compass react to magnet? I downloaded Compass program for Android and tried to bring strong magnet close to it. The pointed remained stable, as if there was no magnet nearby.

Here is the video proof on YouTube.

I have checked other devices, including iPad Air 2 and they showed similar behavior. This is drastically differs from conventional compass behavior. Also, neither device show correct cardinal directions, except conventional compass.

Why doesn't Android compass react to magnet?

UPDATE

Note, that magnetic field value definitely increasing when magnet is approaching.

So, the actual question is how do they try to distinguish between Earth magnetic field and magnet's magnetic field?

Also, note, that direction shown by compass is INCORRECT relatively to conventional compass.
The sensor algorithm people worked hard to make sure that the "compass sensor" is not affected by stray ambient magnetic field. If you want to see magnetic field data, use the magnetic field sensor instead.

The common way to know that the device is subjected to an external magnetic disturbance is by comparing the magnetic sensor data with motion sensors (accelerometer and more importantly the gyroscope), if there is no motion, the algorithm will suppress any change to compass heading, because it is trying to reflect reality that compass heading did not change. For more details, look under the subject of "sensor fusion."