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Most app backups in icloud are end to end encrypted. If you choose to backup your entire device in icloud (rather than automatically on your local mac) that backup is not end to end encrypted.

I agree it should be but that doesn’t seem like a huge deal especially considering the alternative platform (android) doesn’t even have a comprehensive backup solution (only individual apps via gdrive etc).

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I agree it should be but that doesn’t seem like a huge deal

I respectfully disagree. Encouraging people to upload data that will probably be very personal in some cases, such as photos, videos or messages they store on their phone, without proper safeguards is at best negligent and/or abusive depending on your point of view. The fact that the other major mobile platform is even worse doesn't make the former situation any better.

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