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In this video tutorial, the presenter shows how to reduce the file size of photos on an iPhone. They explain that changing the camera settings to capture photos and videos in high efficiency format can help reduce file size. By going to the settings application, scrolling down to the camera application, and selecting high efficiency format, users can achieve smaller file sizes, although the quality may not be as high as with the most compatible option. This can help save space on the device without significantly compromising photo quality.