How Much Did the First iPhone Cost in 2007?
By the Price Time Machine team · Updated
The original iPhone price was $499 for the 4 GB model when it went on sale in the United States on June 29, 2007, with a two-year AT&T contract. Adjusted for inflation, that is about $806.97 in September 2026 money, roughly 1.6 times the original price.
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Apple iPhone at a glance
- US launch price
- $499
- In today’s money
- ≈ $806.97June 2007 to September 2026 (CPI-U, BLS)
- US release date
- June 29, 2007
- Where it was designed
- Cupertino, United StatesDesigned by Apple in Cupertino, California. It was assembled in China.
- Category
- Big purchases
- Price source
- en.wikipedia.org
Today’s price is the US launch price adjusted for US inflation with the Consumer Price Index (CPI-U) from the US Bureau of Labor Statistics, comparing the launch month with the latest published month. It updates automatically as new figures come out.
Two prices, then a big cut
Apple sold two versions: 4 GB for $499 and 8 GB for $599, both needing a two-year contract with AT&T. Just over two months later Apple dropped the 8 GB model to $399 and stopped selling the 4 GB one.
After hundreds of emails from upset early buyers, Apple gave them a $100 store credit. A 16 GB model followed in February 2008 at $499.
The original iPhone price in today’s money
Inflation means a dollar buys less today than it did in 2007. Using the US Consumer Price Index, the original original iPhone price of $499 works out at about $806.97 in September 2026 money, around 1.6 times the original figure. That is what the same amount of spending power would cost now, not what the iPhone sells for second-hand.
Where was the iPhone designed?
Apple designed it in Cupertino, California, and it was assembled in China. Development began in 2005 and was kept secret until Steve Jobs unveiled it at Macworld on January 9, 2007.
Original iPhone facts you might not know
- It replaced most physical buttons with a 3.5-inch multi-touch screen that worked with a finger, not a stylus.
- There was no App Store at launch. Apps arrived the following year.
- People queued for days outside Apple stores to buy one.
- In July 2023 a sealed 2007 iPhone sold at auction for $190,372.80, nearly 400 times its original price.
Frequently asked questions
How much was the first iPhone?
The first iPhone cost $499 for 4 GB or $599 for 8 GB when it launched in the US on June 29, 2007, with a two-year contract.
How much is $499 from 2007 worth today?
Adjusted for US inflation, the original iPhone’s $499 price is about $806.97 in September 2026 money.
Did the first iPhone get cheaper?
Yes. Two months after launch Apple cut the 8 GB model from $599 to $399 and dropped the 4 GB model.
Want to compare the original iPhone price with other launch prices? See what the Commodore 64 cost, browse more famous launch prices, or play this question in Price Time Machine.
Sources
Launch prices and dates are checked against the sources below. Today’s price is calculated from official US inflation data and updates automatically when new figures are published.
- Press release: Apple, “iPhone Premieres This Friday Night at Apple Retail Stores” (28 June 2007)
- Wikipedia: iPhone (1st generation)
- US Bureau of Labor Statistics: Consumer Price Index (CPI-U)