The Once Popular iPhone That's Worth A Ton Of Money Now

Apple's very first iPhone dropped like an atom bomb back in 2007. It's no exaggeration to say that it forever changed the way that society does, well, everything. While the iPhone 1st Generation is sometimes referred to as the first smartphone, that's not exactly accurate. That honor goes to a device that would become known as the IBM Simon Personal Communicator, which was unveiled at an electronics trade show back in 1992 and sold to the public in 1994. In fact, the first text message ever was sent from this gadget in December, 1992. It read "Merry Christmas."

Other developments followed, like the camera phone in 1999 and live GPS in 2004. However, when Steve Jobs announced the first iPhone at a MacWorld convention, it made competing products look downright antiquated in comparison. Gone was any sort of keypad or keyboard in favor of a sleek touchscreen. Though Apple and Jobs may not have invented the smartphone, their product established the modern design that still looks contemporary today. 

Regular Money Digest readers already know that computers from Apple's infancy can be worth a ton of money. Ditto for the brand's portable media player, the iPod, which has sold for as much as $29,000 for a first-gen unit in unopened condition. And now, the original iPhone joins these other Apple products in the realm of becoming seriously collectible. In fact, a still-sealed specimen sold for more than $190,000 in a July 2023 online auction.  

According to LCG Auctions, the $190,372.80 first-gen iPhone had one important feature that's somewhat counterintuitive: a smaller storage capacity. Because consumers could purchase an 8GB version — double the memory of the basic 4GB model — for an extra $100, the cheaper 4GB model sold rather poorly. In fact, it was discontinued after only two months on the market. By some estimates, the 4GB original iPhone is perhaps 20 times rarer than its big brother.

Some additional provenance exists in the fact that the record-setting factory-sealed original iPhone previously belonged to a member of Apple's engineering team that developed the iconic device. When new, the 4GB iPhone sold for $499, so the auction price represents a 38,051% increase in value over 16 years. While the seller is no doubt pleased, the buyer might be slightly less enthusiastic.

That's because two more factory-sealed first-generation 4GB iPhones have since been auctioned for a lower value. In October 2023, the same exact model fetched $133,435, followed by a $130,027 sale in March 2024. For comparison, a fully sealed 8GB model from 2007 garnered "only" $37,663 in October 2023, highlighting the scarcity of the phone with the smaller memory.

Recognizing that most owners of the original iPhone were anxious to use and show off the cutting edge gadget, what about the value of open-box examples? Like with horror movie VHS tapes and many other collectibles, items that are still encapsulated in factory plastic wrap are obviously the most desirable. That said, your carefully used original iPhone still can still have value well in excess of the original purchase price. According to one expert, used examples can still rake in several thousand dollars, though the condition needs to be mint without detectable wear. 

Sadly, if your old first-gen iPhone is a little rough around the edges and without its original box, it's going to be tough to crack the three-figure barrier in value. A quick browse of sold items on eBay shows many iPhone 8GB models selling for under $100, or even less than $50 in some cases. With its original box and/or accessories, a visibly used example can still command $200 to $300 on eBay. While that's less than it cost when new, especially when factoring for inflation, it's still an impressive amount of money for an obsolete smartphone. That speaks volumes about the impact of the iPhone on history and the public's desire to memorialize the revolutionary gadget.