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A) it's a rumor
B) more importantly, the cost is not upfront but ongoing. That billion dollars is going to support a lot of free functionality that won't directly bring in revenue but will directly bring in expenses. Notice that iOS 5 was jailbroken already, the desktop OS is getting compromised repetively, etc. It is quite likely Apple can have a Sony moment with their data (Credit cards, etc.) and spend massive resources to rectify it while attempting to guarantee uptime for free email, and syncing.

It is something that Apple has to do to remain competitive with Google, but it is also a major departure from what the investors are use to and that is Apple charging premium prices for products and services upfront. There is no way margins won't take a hit. Apple is hoping volume increases will make up the difference, and it may, but it won't in the medium to long term if Google soaks up the volume. As it stands as of today, Google is winning the volume race.