I have wondered if this was in the cards for a while now. I have had trouble reconciling it with a few things though. On one hand, from a competition standpoint, there is an argument to be made that google is providing free cloud-based sync for all users. Therefore, Apple needs to be competitive with them. However, Apple rarely (never?) releases products as loss leaders. They are always interested in breaking even or (ideally) extracting a small amount of revenue from every offering. I can't see them generating sufficient revenue using advertising, but perhaps iAd would be one way to do it.<p>On the other hand, the cost of hosting email, calendars, address book sync, etc... is fairly small. I could see a dropbox-like scenario where you get a small amount of free storage (plenty for contacts, calendars, and recent email). Then you pay for additional storage and/or access to premium streaming content. That offering could be built into the purchase price of most Apple gear without a dramatic price increase.