Why does it take so long to sync my iPhone?

It's at step 2 of 4 - Syncing contacts.

It's been loading this for a very long time now.

I had iOS 4.something and it's now updated to iOS7 - if iTunes ever finishes syncing and gives me my phone back!

For updating it will take a long time that's normal,

if your syncing another stuff like ( application, contacts, pix, etc… ) it won't be too late unless if your using a fake USB cable

IOS7 is around 1.5gb in size and it's trying to update your firmware and not mess up your stuff at the same time. Basically--a really really big file that's about 1/8th the size of the phone memory.
For future reference (if you can) ONLY use Wi-Fi when updating to like iOS 7.1 for example. Why? OTA (over the air updates) are honestly just faster. Mine took around 20 mins but I didn't use iTunes either. Don't interrupt it now for fear that it will compromise something. Live and learn, but use Wi-Fi next time.
Best luck.
http://ipod.about.com/od/UsingiOS5/ht/Install-Iphone-Software-Updates-Without-Connecting-Itunes.htm

http://support.apple.com/.../kb/ht4623

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