iCloud: Backup and restore overview

I recently had to replace one of my iOS Apple devices and I was concerned that it would be a big headache to reload all my apps and customize the device exactly the way I had it. Needless to say, the following overview describes exactly how u can backup your apps and device settings to iCloud and restore them effortlessly.
Have no fear...I tried this and it works!

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Summary

Learn how iCloud Backup works, what data is backed up, and how Backup uses your iCloud storage.

Products Affected

iCloud

Backup overview 

iCloud automatically backs up the most important data on your device running iOS 5 or later. Once you have enabled Backup on your iPhone, iPad, or iPod touch in Settings > iCloud > Backup & Storage, it will run on a daily basis as long as your device:

• is connected to Internet over Wi-Fi
• is connected to a power source
• has the screen locked

You can also back up manually whenever your device is connected to Internet over Wi-Fi by choosing Back Up Now from Settings > iCloud > Storage & Backup.
What is backed up
You get unlimited free storage for:

• Purchased music, movies, TV shows, apps, and books
Notes: Backup of purchased music is not available in all countries. Backups of purchased movies and TV shows are U.S. only. Previous purchases may not be restored if they are no longer in the iTunes Store, App Store, or iBookstore.
Some previously purchased movies may not be available in iTunes in the Cloud. These movies will indicate that they are not available in iTunes in the Cloud on their product details page in the iTunes Store. Previous purchases may be unavailable if they have been refunded or are no longer available in the iTunes Store, App Store, or iBookstore.

You get 5GB of free iCloud storage for:

• Photos and videos in the Camera Roll
• Device settings (for example: Phone Favorites, Wallpaper, and Mail, Contacts, Calendar accounts)
• App data
• Home screen and app organization
• Messages (iMessage, SMS, and MMS)
• Ringtones
• Visual Voicemails

You can select which applications back up their data and see how much storage space each application is using:

1. On your Home Screen, tap Settings
2. Tap iCloud
3. Tap Storage & Backup
4. Tap Manage Storage
5. Select the device you want to manage

If you need more iCloud storage, you can purchase additional iCloud storage from your iOS device, Mac, or PC.
 The following items are not backed up to iCloud. You can sync these items with a computer using iTunes:

• Music, movies and TV shows not purchased from the iTunes Store
• Podcasts and audio books
• Photos that were originally synced from your computer

How content is restored to a new device

When you go through Setup Assistant on a new device running iOS 5 or later, choose "Restore from iCloud Backup" and enter your iCloud account and password. You will see the three most recent backups for each of the devices on which you enabled Backup. Choose which backup to restore from.

After your device restarts, your settings and accounts are restored and Backup starts downloading your purchased music, movies, TV shows, apps, books, Camera Roll, and other content.
Note: You may be prompted to enter the passwords for all accounts enabled on your device. You may also be prompted to enter the password for for any iTunes, iBookstore and App Store accounts for which iCloud Backup is attempting to restore content.

A progress bar will appear underneath the apps that are being downloaded. To prioritize the restore of a specific app, tap its icon. Restore will attempt to download the same version of the app that you had installed previously. If that version is no longer available, the latest version of the app will be restored.

If you are using iTunes Match (U.S. only), you can download any of your songs, albums, or playlist from iCloud after the restore is complete.

To check if the restore is complete, go to Settings > iCloud > Storage & Backup.