The Fast Answer
HEIC files are roughly half the size of JPEG at the same visual quality, so leaving your iPhone on High Efficiency saves several gigabytes across a large library. iOS converts to JPEG automatically when you share to something that cannot read HEIC, so the compatibility cost is close to zero for most people.
Switching the setting does not convert photos you have already taken. It only changes the format of future ones, which is why changing it is never a fix for a phone that is already full.
What HEIC Actually Is
HEIC is Apple's implementation of HEIF, a container built on HEVC (H.265) compression. Apple made it the camera default in iOS 11. JPEG, by contrast, dates to 1992 and its compression scheme has not fundamentally changed since.
The practical result is that HEIC needs about half the bytes to store the same image at the same perceived quality. It also carries things JPEG cannot: 10-bit colour, depth maps for Portrait mode, transparency, and multiple images in one file for Live Photos.
The Storage Difference, in Gigabytes
A modern iPhone photo saved as HEIC averages 2.4–3.6 MB depending on the model and sensor. The same shot as JPEG typically lands near double that.
On a 10,000-photo library, that difference is in the range of 20–30 GB — the gap between a 128 GB phone that copes and one that constantly warns you. It is the single largest storage decision available in Settings, and it takes one tap.
Where Compatibility Actually Breaks
Almost nowhere, for normal use. Share a HEIC photo to a messaging app, upload it to a website, or AirDrop it to a Mac and iOS hands over a JPEG unless the destination understands HEIC. Settings → Photos → Transfer to Mac or PC → Automatic keeps that behaviour when you plug into a computer.
The friction shows up when you copy files off the device by hand — a card reader workflow, an older Windows machine, or software that reads the raw file rather than accepting a share. Windows can read HEIC with a codec extension from the Microsoft Store; some older editing tools cannot at all.
If that describes your workflow, Settings → Camera → Formats → Most Compatible switches future photos to JPEG. Everyone else should leave High Efficiency on.
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Download Free on App StoreConverting Existing HEIC Files
You rarely need to. Sharing a HEIC photo already produces a JPEG at the far end, and the Files app can export a copy in JPEG format when you genuinely need the file itself.
What you should not do is bulk-convert your library to JPEG to 'fix' compatibility. It roughly doubles the storage the library consumes and produces a second copy of every photo — which is to say, it creates a duplicate problem while solving a compatibility problem you probably do not have.
Format Choice Is Not a Cleanup
Switching to High Efficiency helps from the moment you switch, and does nothing about what is already on the phone. A library that is 15–30% duplicates, near-identical frames, blurry shots, and forgotten video stays exactly that size regardless of format.
If storage is the actual problem, start with iPhone storage full: fix it in under 5 minutes, which ranks every fix by what it returns, or estimate your own numbers with the photo waste calculator. For the highest-volume fix specifically, see how to delete duplicate photos on iPhone.