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It's pretty easy for me:

1) I want to keep all my Photos library originals on my phone -> I need a 1TB phone, since I have roughly 600GB of pictures, taken over the many years since the advent of digital photography (my first pictures are from Dec 2000, when I got my first digital camera, a 2MP Kodak DC3800)
2) I decide it's enough to "optimise" storage for Photos, so I can fit into 128GB, but 256GB give me a bit of buffer for taking long videos, keeping more music on my phone for when I'm on an airplane, etc... it's a decent tradeoff

Downside of 2 is that going back to watch old videos/pictures is not "instant", sometimes it take a few seconds to wait for wifi/mobile buffering to see the picture/video in full quality... but this downside for me is not worth the 500€+ I would need to give to take a 1TB phone instead of a 256GB one.
 
My current 13 Pro Max 512GB has 300.2 GBs of data on her but I still ordered my 14 Pro Max in 512GB instead of the terabyte.


I run my life on my device so I keep every possible document
 
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