Consumer confusion
As of 2007, most consumer hard drives are defined by their gigabyte-range capacities. The true capacity is usually some number above or below the class designation. Although most manufacturers of hard disks and Flash disks define 1 gigabyte as 1,000,000,000 bytes, the computer operating systems used by most users usually calculate a gigabyte by dividing the bytes (whether it is disk capacity, file size, or system RAM) by 1,073,741,824. This distinction is a cause of confusion, especially for people from a non-technical background, as a hard disk with a manufacturer rated capacity of 400 gigabytes may have its capacity reported by the operating system as only 372 GB, depending on the type of report.
The difference between units based on SI and binary prefixes increases exponentially — in other words, an SI kilobyte is nearly 98% as much as a kibibyte, but a megabyte is under 96% as much as a mebibyte, and a gigabyte is just over 93% as much as a gibibyte. This means that a 500 GB hard disk drive would appear as "465 GB". As storage sizes get larger and higher units are used, this difference will become more pronounced.
Note that computer memory is addressed in base 2, due to its design, so memory size is always a power of two (or some closely related quantity, for instance 384 MiB = 3×227 bytes). It is thus convenient to work in binary units for RAM. Other computer measurements, like storage hardware size, data transfer rates, clock speeds, operations per second, etc., do not have an inherent base, and are usually presented in decimal units.
As an example, take a hard drive that can store exactly 250×109 or 250 billion bytes after formatting. Generally, operating systems calculate disk and file sizes using binary numbers, so this 250 GB drive would be reported as "232.83 GB". The result is that there is a significant discrepancy between what the consumer believes they have purchased and what their operating system says they have.
Some consumers feel short-changed when they discover the difference, and claim that manufacturers of drives and data transfer devices are using the decimal measurements in an intentionally misleading way to inflate their numbers. Several legal disputes have been waged over the confusion. See Binary prefix — Legal disputes.
The basis of the problem is of course that the official definition of the SI units is not well known, and some legal settlements include directions for manufacturers to use clearer info, e.g. by stating a hard disk's size in both GB and GiB.