32G iPhone 5 only shows 28g capacity. Is that correct?
Just activated new iPhone 5. 32G only showing 28.08 capacity in iTunes. I understand a couple of G for the OS, but 4G? Is that correct?
iPhone 5, iOS 6
Yes.
This is how memory is reported. The same is true of your computer:
http://en.wikipedia.org/wiki/Gigabyte
