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In this video tutorial, the creator explains how to reduce file size for photos on an iPhone. They suggest changing the camera format to high efficiency to lower file sizes, even though it may lower the image quality. By going to settings, scrolling to the camera application, and selecting high efficiency format, users can decrease the file size of their photos and videos. This change will use jpeg.h264 instead of the most compatible format, resulting in smaller file sizes with slightly reduced image quality.