IPhone 5s decrease memory after updating to iOS 8.3

I notice a decrease on my iPhone 5s 16GB memory from: 16GB to 12GB after downloading the latest iOS 8.3 update. I though I have so much stuff on the phone so I decided to delete all content and reinstall the software to factory settings. No luck, my phone still showing Capacity 12.0 GB and Available 11.1 GB. My phone is empty and I don't think is fair that I purchase a 16GB iPhone not 12GB iPhone. Do anyone knows what's is happening?

You never had 16GB of space on the phone available to start with. The 16GB is the capacity of the phone. With the iOS installed, you generally have around 12.5GB available. Once you add anything else to it, the capacity goes down. You cannot change that. Whether you believe it is fair or not, you did get a 16GB capacity device, it is just that not all of that space is available for you to utilize.

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