Apple has sent a memo to Apple Store employees and Apple Authorized Service Providers notifying them that broken 16GB iPhone 5c models which require a full device replacement may be substituted for the larger 32GB storage capacity until further notice.
The iPhone 5c has been fully discontinued from sale in all countries across the globe, so it is likely the decision to “upgrade” users to the larger 32GB storage capacity is due to Apple no longer holding stock of the 16GB model to offer a replacement.
According to a leaked internal document Apple may soon also replace damaged iPhone 6 Plus devices that qualify for a full device replacement with the a iPhone 6s Plus, likely due to a shortage in supply caused by the reduced price $29 out-of-warranty battery replacement service.
The short memo reads…
Orders for whole unit service inventory of iPhone 5c (16GB) models may be substituted to iPhone 5c (32GB) models until further notice.