This article explains it better:
http://www.macworld.co.uk/feature/ipad/whats-iphone-ipod-ipads-true-formatted-st orage-capacity-3511773/
With that said, this is an issue with every single device that has onboard storage capacity, and its always been the case. I have an old 256MB(megabyte) Sony Micro Vault USB drive, and it actually only has 247MB as reported by the computer.
Sony adds this disclaimer to its products:
http://www.sony.net/Products/Media/Microvault/products/usm-m/index.html
Actual usable capacity is less than the amount shown on the device. Capacity is based on 1GB = 1 billion bytes.
Even other phone and tablet manufacturers do this:
http://www.androidcentral.com/32gb-galaxy-s6-and-s6-edge-have-just-over-23gb-sto rage-free
Apple ends up being one of the better ones at this actually.
Basically its just the way storage ends up working. You start with a number that may or may not be exactly 16,000,000,000 bytes. Its likely a little less due to how storage is constructed, its impossible to get exact numbers in hard drives. Then you factor in the fact that a gigabyte is not 1 million bytes, but actually 1,073,741,824
Then you have formatting differences. At the end of the day, as long as you end up with around 75% of the advertised capacity, it is acceptable. If you bought a 16GB device and where seeing 8 or 9GB then there would be a problem. As it stands 12.2 for a 16GB drive is acceptable.
Unless something dramatically changes with the way storage is built and calculated, this will continue to be the case for any product with starge