If you were finding Google’s Gmail contacts list a little limiting for your social and business needs, only allowing you to store 10,000 contacts within your Gmail account. You will be please to know today Google have increased the limit with Gmail to now accomodate 25,000 contacts within your account, making room for even more friends and business contacts.
The 25,000 contact increase also includes users of Google Apps and Google has also increased the size of the contact files from 32kb up to an impressive 128kb in size. Now allowing you to store even more information about your contacts all in one place.
Source : Google Gmail Blog