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Apple's iCloud is highlighted in the video as a convenient way for third parties, including governments, to access all of your data, even previously end-to-end encrypted data like iMessages. The video discusses the risks of cloud storage and how your files may not truly be yours. Mainstream providers like Google Drive use military-grade encryption, but they still own the encryption keys, giving them access to your data. The video recommends four alternative services to address these privacy concerns, along with honorable mentions. It emphasizes the importance of understanding that cloud storage means your data is essentially on someone else's computer, and providers like Apple and Google retain control over your data.