And if you'd rather not set up an Apple ID, you can tap the Skip This Step link below the two options. You can always add or create an ID from the Settings app later, but note that you won't be able to buy anything on the iTunes Store or set up iCloud until you do.
RESTORE FROM iTUNES If you have an iTunes backup of an older iPhone, select this option and connect to your computer. You'll see a screen asking if you want to set your phone up as a new device or restore it from a local backup.
Choose Restore from this backup, and then use the pop-up menu to choose the desired backup. Click Continue, and iTunes restores that data and syncs with your device. You're then asked to give your device a name and choose whether to automatically sync songs and videos, photos, and/or apps to your device. Make your selections and click Done, and then iTunes performs its first sync. Once it's complete, the setup process continues.
RESTORE FROM iCLOUD If you have an iCloud account and you've previously backed up an older device to iCloud, Restore from iCloud Backup' lets you restore that data directly to your new iPhone without having to connect to a computer. Choose Restore from iCloud Backup, and then enter your iCloud Apple ID and password. Agree to the iCloud terms and conditions by tapping Agree (twice), and your device displays all compatible iCloud-hosted backups. Be sure to pick the correct backup here, as the list may include backups for other devices you own.
Choose the desired backup, and then wait — the process can take anywhere from a few minutes to many hours, depending on how many apps you had installed and how much data you had stored in those apps. (Restoring from an iTunes backup is much faster than restoring from iCloud, which is why many people back up to iTunes periodically even if they normally back up to iCloud.)
When the restore is finished, your device restarts, and you see a screen explaining that you have a few more steps to follow.
After you've set up a network connection, entered your Apple ID, and agreed to your terms and conditions, it's time to decide if you want to use iCloud. The service is an umbrella term for Apple's collection of sync offerings, which allow you to sync your photos, apps, contacts, calendars, and mail across multiple devices.
You can even set up different Apple IDs for iCloud and iTunes, if you have one shared Apple ID you use for family purchases and another you want to use for your iCloud data.
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