iCloud Backup
The Backup is taking up a lot of my storage on my iCloud. What exactly is the backup option? If I take all my apps off how will that affect the use of my apps?
iPhone 11, iOS 14
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See the 'Choose which apps to backup on your iPhone, iPad, or iPod touch' (and other sections) in:
Manage your iCloud storage - Apple Support
The backup doesn't actually backup the app itself, only the data that app generates (such as app login info, level within a game, etc.) Not backing up the app will not affect the performance of the app. You will just have to start from scratch within that app if you ever need to restore a backup.