Since I changed this setting on my iPhone, I've noticed that my battery life has nearly doubled compared to what it used to be. It conserves battery because the iPhone is using less energy by not having to keep the screen as bright as it normally would be.
Activating the Reduce White Point feature can not only conserve your phone's battery but can have the added impact of reducing eye strain and fatigue. When colors on your phone are less vibrant, it helps alleviate eye strain and reduce the amount of blue light emitted that disrupts sleep.
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