[AI Storage Demand Squeezes Apple's Upgrade Profits: 1TB Flash Memory Cost Rises to $192, Gross Margin Drops to 68%] According to Jinse Finance, competition for flash memory supply among AI data centers is eroding Apple's long-standing ability to generate high profits through iPhone storage upgrades. In the iPhone 17 Pro era, upgrading from the base capacity to 512GB cost consumers an extra $200, while Apple estimated the additional storage cost at only $15, resulting in a difference of $185. With the iPhone 18 Pro, the additional cost rose to $66, reducing the difference to $134. The change is even more pronounced with the 1TB version: the additional storage cost increased from $42 to $192, while Apple raised the upgrade markup from $400 to $600. The difference after deducting the additional storage cost increased from $358 to $408, but the gross margin dropped from approximately 89.5% to 68%. The estimated storage cost for the new 2TB version is as high as $450. As AI companies purchase flash memory in large quantities and suppliers gain stronger bargaining power, Apple is passing on some costs by raising prices, but the high profit margin of its storage upgrade business is being eroded.