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How much did an iPhone cost in 2007 vs. 2026? The gap is smaller than you think
The apparent price gap between the first iPhone and today’s models shrinks once US inflation and older carrier subsidies are taken into account. The comparison suggests modern iPhones cost more in cash upfront, but the original was not as inexpensive as its headline price implies.
The 2007 iPhone started at $499, equivalent to over $800 in 2026 dollars, while the iPhone 17 costs $899. The original also required a two-year AT&T contract, with plans costing at least $60 a month in unadjusted dollars; the $199 prices of the iPhone 3G and 3GS likewise came with contracts. Adjusted for inflation, the unlocked iPhone 4’s $599 price in 2010 is about $920 today. Modern phones offer far more features, though an $899 starting price remains unaffordable for many people.
In short
- Inflation puts the original iPhone’s $499 price above $800 today.
- The iPhone 17 starts at $899, a smaller gap than it first appears.
- Early low prices often depended on costly, long-term carrier contracts.
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