I don't find the segmentation a problem - having high-end models just makes the mid-range look like better value. Old and very common trick. The problem is th

I don't find the segmentation a problem - having high-end models just makes the mid-range look like better value. Old and very common trick. The problem is that in the age of Retina displays, apps that were a 50mb three years ago are 150mb nowadays. So those 16gb are filled in no time at all. Compare the iPad to the Xbox 360: the 360 launched with a 20gb hard drive. A couple of years later, that was replaced with a 60gb drive - because system changes made that 20gb very small. I expect that the real reason is that Apple's margins are under pressure from cheap Androids, and a Retina display + uber CPU/GPU are better competition points than touching the Golden Goose..