Apps will be deleted message

Joined
Dec 11, 2010
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Your Mac's Specs
2010 MacBook Maverick 2.4 GHz Intel Core 2 Duo 4 GB Memory
I just attempted to update my iphone 4 to the new ios5 and received a message that all the apps on my phone will be removed.

I have not yet upgraded to Lion on my computer and am currently running Snow Leopard 10.6.8

Is this normal with this new operating system and is there a way to upgrade without losing all apps on the phone?
 

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