Assuming you're running Windows Vista or later you can use the following steps:
- Open a command prompt by hitting the start button and typing CMD<Enter> in the search box that opens up.
- To move the current backup folder from C: to D: type in this command and press <Enter>
Move "C:\Users\<User>\AppData\Local\Apple Computer\MobileSync\Backup" "D:\Backup"
Where <User> is your Windows user name.
- To make iTunes look for the data in the new location type in this command and press <Enter>
MkLink /J "C:\Users\<User>\AppData\Local\Apple Computer\MobileSync\Backup" "D:\Backup"
If your external drive has a different letter or you already have a folder called "Backup" then edit "D:\Backup" accordingly in both commands.
If you're still running Windows XP you can use Junction (cmd line tool) or NTFSLink (shell ext.) In both cases you move the existing folder to a new location, create an empty folder where the old one used to be, then use the tools to get the operating system to link the two together and silently redirect any file operation on the old location through to the new one.
Note that while this works for iOS device backups it cannot be used for media content.
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