iTunes can create backups of settings and certain other information on iPhone and iPod touch. You can use a backup to restore this information to your iPhone or iPod touch after a software restore or update, or to transfer information to a different device. Backups can be deleted from iTunes using the steps below. For information about how to back up your media in your iTunes library to a CD or DVD, refer to How to back up your media in iTunes.
Source: Apple - Support - Most Recent - iPhone
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