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Which is fine and dandy except computers dont use the IEC system (yet). The main reason people get confused is because they directly compare the two systems to each other. While IEC deemed a gigabyte as 1 billion bytes, a computer will still see otherwise. This is mainly why the box you posted claims that while "1GB = 1bill bytes; the formatted capacity will be less". Because a computer still sees 1 billion bytes as less than 1073741824 bytes; because computers still count in base-2 (whereas humans count in base 10)
Apple adapted with Snow Leopard the GB as the measure in Finder, but what they mean here is the overhead that the filesystem generates.
 
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