This is the most common and known way manufactures misleads non informed buyers.In digital world base number system is 2(binary number system) not 10(aka decimal number system). So One Thousand is not 1000 but 1024.However HDD manufacturer advertise the capacity in decimal system so the actual space of HDD is always less than advertised capacity(because at every stage you are dividing by 1024 & not 1000.e.g.100000bits is 100000/1024=97.65kb but advertised value will be 100kb).In case of 1TB hdd the bits are 1000000000000 but divide it by 1024 three times & you will get ~931gb so basically manufacturers are advertising decimal system values but PC will use binary system values.