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In this video tutorial, the creator explains how to reduce the file size of photos on an iPhone. They recommend changing the camera settings to capture photos in the high efficiency format to save space, as the most compatible setting uses jpeg/h.264 which results in larger file sizes. While high efficiency may slightly reduce photo quality, it still produces good results. The process involves going to the camera settings in the iPhone's settings application and selecting the high efficiency format. This simple adjustment can help free up storage space on your device.