According to the report, “The new iPhones are expected to have more storage for those photos. Instead of 16GB as a starting point for the entry-level iPhone, the new starting point will be 32GB, according to a person familiar with Apple’s iPhone plans.” While the 16GB model represented a cheap(er) way for customers to purchase an iPhone, it was a hassle trying to manage its storage.
Apps these days are bigger than they used to, and forget about updating to the next major iOS build as there wouldn’t be enough space to download and install the update, thus forcing users to either delete apps to make space, or download the update on their computers and update their phones through there.
Apple has made some headway with iOS 10 in terms of better managing storage, but still in a world where Android phones offer up expandable memory, we suppose the least Apple could do is offer a larger base storage. Needless to say it should be taken with a grain of salt for now, but hopefully the rumors will prove to be true.