You have been given a lot of good answers so far, but starting with the answer that you are already dealing with pointers when you use long strings, dynamic arrays and object references you should start to wonder why you would use pointers, instead of long strings, dynamic arrays and object references. Is there any reason to still use pointers, given that Delphi does a good job hiding them from you, in many cases?
Let me give you two examples of pointer use in Delphi. You will see that this is probably not at all relevant for you if you mostly write business apps. It can however become important if you ever need to use Windows or third party API functions that are not imported by any of the standard Delphi units, and for which no import units in (for example) the JEDI libraries can be found. And it may be the key to achieve that necessary last bit of speed in string-processing code.
Pointers can be used to deal with data types of varying sizes (unknown at compile time)
Consider the Windows bitmap data type. Each image can have different width and height, and there are different formats ranging from black and white (1 bit per pixel) over 2^4, 2^8, 2^16, 2^24 or even 2^32 gray values or colours. That means that it is unknown at compile time how much memory a bitmap will occupy.
In windows.pas there is the TBitmapInfo type:
type
PBitmapInfo = ^TBitmapInfo;
tagBITMAPINFO = packed record
bmiHeader: TBitmapInfoHeader;
bmiColors: array[0..0] of TRGBQuad;
end;
TBitmapInfo = tagBITMAPINFO;
The TRGBQuad element describes a single pixel, but the bitmap does of course contain more than one pixel. Therefore one would never use a local variable of type TBitmapInfo, but always a pointer to it:
var
BmpInfo: PBitmapInfo;
begin
// some other code determines width and height...
...
BmpInfo := AllocMem(SizeOf(TBitmapInfoHeader)
+ BmpWidth * BmpHeight * SizeOf(TRGBQuad));
...
end;
Now using the pointer you can access all pixels, even though TBitmapInfo does only have a single one. Note that for such code you have to disable range checking.
Stuff like that can of course also be handled with the TMemoryStream class, which is basically a friendly wrapper around a pointer to a block of memory.
And of course it is much easier to simply create a TBitmap and assign its width, height and pixel format. To state it again, the Delphi VCL does eliminate most cases where pointers would otherwise be necessary.
Pointers to characters can be used to speed up string operations
This is, like most micro optimizations, something to be used only in extreme cases, after you have profiled and found the code using strings to consume much time.
A nice property of strings is that they are reference-counted. Copying them does not copy the memory they occupy, it only increases the reference count instead. Only when the code tries to modify a string which has a reference count greater than 1 will the memory be copied, to create a string with a reference count of 1, which can then safely be modified.
A not-so-nice property of strings is that they are reference-counted. Every operation that could possibly modify the string has to make sure that the reference count is 1, because otherwise modifications to the string would be dangerous. Replacing a character in a string is such a modification. To make sure that the reference count is 1 a call to UniqueString() is added by the compiler whenever a character in a string is written to. Now writing n characters of a string in a loop will cause UniqueString() to be called n times, even though after the first time is is assured that the reference count is 1. This means basically n - 1 calls of UniqueString() are performed unnecessarily.
Using a pointer to the characters is a common way to speed up string operations that involve loops. Imagine you want (for display purposes) to replace all spaces in a string with a small dot. Use the CPU view of the debugger and compare the code executed for this code
procedure MakeSpacesVisible(const AValue: AnsiString): AnsiString;
var
i: integer;
begin
Result := AValue;
for i := 1 to Length(Result) do begin
if Result[i] = ' ' then
Result[i] := $B7;
end;
end;
with this code
procedure MakeSpacesVisible(const AValue: AnsiString): AnsiString;
var
P: PAnsiChar;
begin
Result := AValue;
P := PAnsiChar(Result);
while P[0] <> #0 do begin
if P[0] = ' ' then
P[0] := $B7;
Inc(P);
end;
end;
In the second function there will be only one call to UniqueString(), when the address of the first string character is assigned to the char pointer.