If you were standing in a humid line outside an Apple Store in June 2007, you probably had a very specific number burned into your brain. Most people remember the hype, the glass screen, and Steve Jobs’ black turtleneck, but the actual math of that first summer is a bit weirder than the history books usually suggest.
How much was iPhone 1 exactly? It wasn't just one price. And honestly, it didn't stay at that price for very long at all.
The $499 Shock: Launch Day Reality
When the "Jesus Phone" finally hit shelves on June 29, 2007, you had two choices. You could grab the 4GB model for $499 or shell out $599 for the 8GB version.
That sounds cheap compared to the $1,200 bricks we carry around in 2026, right? Not really. You've gotta remember that this wasn't the "unlocked" price we're used to now. You were essentially tethered to AT&T (back then it was still transitioning from the Cingular brand) with a mandatory two-year contract.
Basically, you were paying 500 bucks and signing your life away for 24 months.
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Back then, the tech world was used to "subsidized" phones. You'd get a Blackberry or a Motorola Razr for $99 or even free if you signed a contract. Apple didn't play that game. They demanded the hardware cost upfront. It was a massive gamble that almost felt insulting to the average consumer at the time.
The Great Price Drop Uprising
Here is the part people forget. Apple realized pretty quickly—like, lightning fast—that the 4GB model was a mistake. Nobody wanted it. Why would you pay $499 for 4GB when you could get double the storage for just a hundred bucks more?
Just two months after launch, Apple did something radical and, frankly, kind of mean to their biggest fans. On September 5, 2007, they:
- Killed the 4GB model entirely.
- Slashed the 8GB price from $599 down to $399.
Early adopters were furious. They’d just spent $600 on a phone that was now $400. The backlash was so intense that Steve Jobs had to post an open letter on Apple’s website. He basically said, "Look, tech moves fast, but we're sorry." To smooth things over, Apple gave everyone who bought at the original price a **$100 Apple Store credit**.
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It was a messy, chaotic start for a device that eventually conquered the world.
How Much Was iPhone 1 Worth Then vs. Now?
If we talk about value, we have to talk about inflation. Using the math of early 2026, that original $499 launch price is roughly equivalent to $785 today.
It’s funny because an entry-level iPhone 17 today sits right around that same $799 mark. Apple’s pricing strategy hasn't actually changed as much as we think; it's just that our money is worth less and the "base" storage has gone from a pathetic 4GB to 128GB or more.
The Collector's Goldmine
If you have an original iPhone 1 sitting in a drawer, don't throw it away. But also, don't get your hopes up unless it’s still in the box.
The market for these has exploded. In 2023 and 2024, we saw factory-sealed 4GB models—the "rare" one that Apple killed after two months—sell at auction for over $190,000. Even the 8GB versions consistently pull in $50,000 to $60,000 if the plastic wrap is still intact.
Used ones? Not so much. A beat-up, scratched iPhone 1 with a dead battery might get you $100 on eBay as a curiosity piece. It’s a paperweight that can't even run a basic weather app anymore.
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Why the Price Tag Was a "Moon Landing" Moment
To understand why people paid $600 for a phone that couldn't even record video or send a picture message via MMS, you have to remember what else was out there.
The competition was the Blackberry Curve and the Palm Treo. They had tiny screens and plastic buttons you had to mash with your fingernails. Jobs marketed the iPhone as "three devices in one": a widescreen iPod, a phone, and a "breakthrough internet communicator."
He wasn't lying about the internet part. Before the iPhone, mobile web browsing was basically reading text on a calculator screen. The iPhone gave you the "real" internet. People were paying for the future, not just the hardware.
Quick Facts: iPhone 1 Pricing Timeline
- January 2007: Announced at Macworld ($499/$599).
- June 2007: Sales begin. Long lines, massive hype.
- September 2007: 4GB discontinued. 8GB drops to $399.
- February 2008: A 16GB "powerhouse" version is released for $499.
- July 2008: The iPhone 3G replaces it, starting at a subsidized $199.
What You Should Do Now
If you’re looking to buy an iPhone 1 today for nostalgia, skip the "sealed" auctions unless you're a millionaire. You can find "decent" condition units for about $150. They make great desk ornaments, but keep in mind the batteries in these 19-year-old devices are often swollen or completely dead.
If you happen to find a sealed one in your attic, do not open it. Get it appraised by a reputable auction house like LCG Auctions or RR Auction. The 4GB model specifically is the "Holy Grail" because it was on shelves for such a short window of time.
For those just curious about the history, the best way to experience the "vibe" of 2007 is to watch the original keynote on YouTube. It’s still the gold standard for how to sell a product, even if that product originally cost a small fortune and couldn't even copy and paste text.