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That's a setting dude. We have six devices on one account.
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All this being said - what a pain in the neck. You and kb are spot on. What's the cost to apple for another 16 or 32 GB of storage? Or (GASP) an SD slot? (Blasphemy!) I always end up paying for the bigger storage because 16 is just plain laughable. Especially as their OS continues to bloat out like my waistline.