I know this topic has been discussed before on Stack Overflow. But there are still some things that are not clear when I read previous posts about it. So here they are:
SharedPreferences is used for just that, storing user preferences shared application-wide. You can use it, for example, to store a user's username, or perhaps some options he or she has configured in your app in which you want to remember.
SQLite is a relational database. It's used to store your application's data, not preferences or configuration information.
Both are stored locally on the device.