IPhone auto brightness- how does it really work?

Once I unlock my 4s, the screen either gets brighter or darker, depending on lighting. Now, let's say my screen adjusted itself to a brighter setting in a bright room. Without turning off my phone, I move to a darker room. Now shouldn't the brightness automatically dim? Or is this how the feature works (adjusts only when device is unlocked)?

It can tell how bright the surroundings are so it can adjust to that area.example if its really sunny the screen will go to the brightest and if your in a dark room then it will go to the darkest setting to you can always see what your doing and or not be blinded

It is also possible to turn off the auto brightness in your settings.

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