Who should buy the 16GB model?
The 16GB device is great for the casual user who doesn’t store a lot of data on their device. They either don’t download a lot of apps or rely on the cloud to store their music or photos. These customers use their phone for a few key activities and are not interested in storing half their life in their pocket. The 16GB also is a great starter model for the person who is new to the iOS platform and doesn’t have a lot of music in iTunes or apps they “must have” on their device. Looking beyond the casual user is the cloud user, who has a lot of data but doesn’t store it on their device. Because most of their data is in the cloud, they may be able to squeeze only the critical files they need on a 16GB model and access the rest over the internet.
It would have been great if Apple made the base model 32GB, but for some strange reason the company only doubled the storage of higher capacity models.