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In this video tutorial, the speaker explains how to reduce the file size of photos on an iPhone by changing the camera settings to capture photos and videos in the high efficiency format. By going to the settings application, scrolling down to the camera settings, and selecting the high efficiency format, users can reduce file size at the cost of some quality. The speaker emphasizes that while the quality may not be the best, it will still be of great quality. This simple adjustment can help users save space on their devices.