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In the video tutorial, the creator explains how to reduce the file size for photos on an iPhone. They suggest going to the settings application, selecting the camera application, and choosing the high efficiency format for capturing photos and videos instead of the most compatible format, which uses jpeg.h264 and increases file size. While high efficiency may reduce quality slightly, it will still be good quality. Many people already know this tip, but it is important for anyone looking to save space on their device.