So buy the upgrade. Me, I'm the type of guy to have 10gb of music, photos and apps, and offload a lot of stuff to my PC and stream increasingly more. I'm okay

So buy the upgrade. Me, I'm the type of guy to have 10gb of music, photos and apps, and offload a lot of stuff to my PC and stream increasingly more. I'm okay with 16. Is 16 a bit silly? Sure, but it's an easy way to pad the margins a bit and there's just plenty of people for whom 16 is just fine, to the extent that the upgrade option is a decent solution. e.g. my entire office is on iPhones and they use it for mail and some other stuff, 80% of their storage is unused, will be unused forever, and it makes sense not to pad that even more and increase the base price. I wish the price bump was a bit smaller if you want to increase your 16gb, more in line with their cost price, but... I'm not at all opposed to the notion that a 16gb base model exists.