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OK. We are good. Here is a question. Not intended to be snarking. When I look at my iPhone Backup it only takes up 4GB of iCloud space (probably because a lot of the data on the phone is already synced to iCloud), but the phone's local storage uses up 22GB. So, if I backed up to my phone to my computer, I assume I would not backup the OS and maybe the Apps, but wouldn't it be significantly more than 4GB?
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On the other hand, I could see how someone might have a completely different situation. The marginal cost of more iCloud space would be significantly more than using available local laptop storage for backup.

There's a mechanism in iOS where apps can categorize data as important, and that's what gets backed up to iCloud. So not all of your data is getting backed up, which, practically speaking, probably doesn't make that much difference, but is another point in favor of doing local backups. So that's one reason why your backup is only 4GB when you possibly have much more data on your phone. The other reason is what you mentioned, if you're already using iCloud for photos, then the device backups probably don't also contain the same photos (data de-duplication).

If all you're calculating is the cost of storage for backups re: iCloud vs. SSD upgrade, that's kind of an interesting thing, $12/year vs. $200 for several years seems like a no-brainer for the $12 side, although it also depends on how much money you get back when you sell/trade in the laptop. And also, not all of that extra $200 is going to be used for your device backup. Dunno. Again, it's stupid that we're even having this conversation because, again, if Apple could be bothered to increase their base-configuration storage as they have in the past and as they have for their other product lines, people like me wouldn't have this problem.
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The legacy of Timmy.

Oh wow, didn't realize that the 13" Airs had always come with 128GB since the 2010 redesign. That makes the whole situation even dumber than I thought, and I already thought it was super dumb.
 
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