Steve Jobs stood on that stage in 2007, wearing the iconic black turtleneck, and told the world he was about to reveal three revolutionary products. A wide-screen iPod with touch controls. A revolutionary mobile phone. A breakthrough internet communications device. Then came the punchline: "These are not three separate devices. This is one device."
The room erupted. But then came the price tag.
If you’re wondering how much does the first iPhone cost, the answer depends entirely on when you asked in 2007. It wasn't just one price, and it didn't stay the same for long. Honestly, the initial pricing strategy was a bit of a mess that ended with Apple cutting prices almost immediately and handing out gift cards to keep early adopters from rioting.
The Launch Day Sticker Shock
When the original iPhone officially hit shelves on June 29, 2007, it came in two flavors based on storage. You had the 4GB model and the 8GB model.
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- 4GB Model: $499
- 8GB Model: $599
These prices were steep. Extremely steep. You have to remember that back then, most people got their phones for "free" or maybe $99 with a two-year contract. Apple flipped the script. They demanded $499 and you still had to sign a two-year contract with AT&T (which was technically Cingular at the time of the announcement).
Steve Ballmer, then CEO of Microsoft, famously laughed at the price. He called it the "most expensive phone in the world" and argued it wouldn't appeal to business customers because it didn't have a keyboard. He wasn't the only skeptic.
The Drama of the 2007 Price Cut
Apple realized pretty quickly that the 4GB model was a dud. Nobody wanted it. Why save a hundred bucks to lose half your storage? Just two months after the big launch, Apple did something almost unheard of in the tech world. They killed the 4GB model entirely and slashed the price of the 8GB model by $200.
Suddenly, that 8GB iPhone cost $399.
Early adopters were furious. Imagine waiting in line for days, dropping $600, and seeing the price tank by 33% eight weeks later. Steve Jobs eventually had to post an open letter on Apple’s website. He apologized—sorta—and offered every "early bird" a $100 Apple Store credit. It was a chaotic start for a device that would eventually change everything.
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What about inflation?
If you look at that $499 price tag through a modern lens, it feels "cheap" compared to a $1,200 iPhone 15 Pro Max. But that’s a trap.
In 2026 dollars, $499 in 2007 is roughly equivalent to **$785**. That means the base-model original iPhone was priced almost exactly where the standard entry-level iPhone sits today. The difference is that today you get 128GB or 256GB of storage, 5G, and cameras that can shoot movies. In 2007, you got 4GB, a 2-megapixel camera with no flash, and no video recording at all. Oh, and no App Store. You were stuck with whatever icons Apple gave you.
How Much Does the First iPhone Cost Today?
This is where things get weird. If you have an original iPhone sitting in a drawer, it’s probably worth about $50 to $150 depending on how scratched up the aluminum back is. They are notorious for scuffs.
But if you have one that is factory sealed? You're sitting on a down payment for a house.
- The Auction Boom: In recent years, sealed original iPhones have become the "holy grail" for tech collectors.
- Record-Breaking Sales: In July 2023, a 4GB original iPhone (the rare one they discontinued early!) sold at auction for over $190,000.
- The 8GB Premium: Even the more common 8GB sealed models regularly fetch between $30,000 and $60,000 at high-end auctions like LCG Auctions.
Why the 4GB? It's the "misprint" of the tech world. Because Apple killed it off so fast, there are very few sealed ones left in existence. It’s pure scarcity.
Why the Pricing Strategy Changed
Apple learned a hard lesson with the first generation. For the follow-up, the iPhone 3G, they changed the business model. They worked with carriers to "subsidize" the cost. This is why the iPhone 3G launched at just $199.
The carrier paid Apple the full price behind the scenes, and you paid it back through your monthly bill. This change is actually what made the iPhone go viral. It moved from being a luxury toy for wealthy tech nerds to a device that a college student could afford.
The First iPhone Price Evolution:
- June 2007: $499 (4GB) / $599 (8GB)
- Sept 2007: 4GB discontinued / 8GB dropped to $399
- Feb 2008: 16GB model added for $499
- Today (Used): $50 - $200
- Today (Sealed Auction): $30,000 - $190,000+
Actionable Steps for Collectors and Tech History Buffs
If you are looking to buy an original iPhone now—either for nostalgia or as an investment—don't just jump on eBay.
Check the model number. The original iPhone is model A1203. If it doesn't say that on the back, it’s not the "2G" original. Also, look at the "mute" switch. On the original, it’s a small silver slider. Later models changed the shape.
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If you find an old one in your attic, don't try to turn it on if the battery is bulging. Those old lithium-ion cells can expand and crack the screen or, worse, catch fire. If the back is flat and it looks clean, you can probably get a decent price from a collector on forums like MacRumors or specialized tech marketplaces.
Buying a sealed one? Get it authenticated by a third party like CAS (Collector Archive Services). There are tons of "re-sealed" fakes out there using shrink-wrap machines. Real ones have a specific plastic pull-tab and a certain weight that's hard to spoof.