If you check the pricing, what they've done is lower prices of the expansions $100 over what they were before, but somehow left the base models at 16 GB. Yester

If you check the pricing, what they've done is lower prices of the expansions $100 over what they were before, but somehow left the base models at 16 GB. Yesterday $600 got you 32GB and an A7 processor, while today gets you 64GB and an A8x. So the better question is: how is Apple getting away with selling a 16GB option for $500? It's not really that much space, especially when you take the OS and the space necessary to download updates into account.