In a smartphone, like in any computer, there are multiple types of memory. These have varying speeds, different price tags and operate differently. Your internal memory for example, is slow, cheap and saves data constantly, even when disconnected from a power supply. As a result, this is where apps and app data are stored, as well as photos and videos.
RAM (Random Access Memory) is expensive, but much faster than internal memory. However, it will forget everything if not connected to a power supply. It serves as a type of work surface for your apps - to store the temporary data needed to use the phone.
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