The first-generation iPhone was a worldwide phenomenon and a revolutionary mobile phone when it was released on June 29, 2007. Steve Jobs, who had introduced the first iPhone at the Macworld conference earlier that year, watched as avid fans around the world lined up for hours, or even days, to get their hands on the touch display. This ushered in an era of incredible profitability for Apple and its breakthrough internet communicator.
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While there’s no arguing that those very first customers got plenty of use and enjoyment out of their iPhones, they might have felt even better in the long run if they had invested that money in Apple stock instead of buying the original iPhone product. Let’s break it down here.
Cost of the Original 2007 iPhone
On that fateful day in June 2007, two versions of the original iPhone went on sale. The first was the 4GB version of the iPhone, while the other had twice the storage space at 8GB. The costs of the phones were $499 and $599 respectively.
Yes, Apple did seemingly reinvent the phone and new iPhone users couldn’t help but fall in love with its operating system. However, having access to the App Store and being able to push the home button didn’t necessarily mean you were making an investment that was growing your wealth.
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Price of Apple Stock in 2007
On a split-adjusted basis, the cost per share of Apple stock on June 29, 2007, was $3.69. For the price of the original iPhones, investors could have ended up with between 135 and 162 shares of Apple stock, depending on the version of the phone they bought.
To simplify the math, say you put $500 into Apple stock and got about 135 shares. Here are a few takeaways as of Aug. 15, 2025, to show you just how much you’d have now:
- Apple stock price: $232.51
- Market capitalization: $3.45 trillion
- 52-week high: $260.09
- 52-week low: $169.21
- How much you’d have if you invested $500 in Apple stock in 2007: $31,505
Value of Apple Stock vs. the Original iPhone in 2025
Perhaps surprisingly — although not to collectors — some of the original iPhones have actually gone up in value since their initial sales date in 2007. This doesn’t apply to all 1st-gen iPhones, of course, but some that are brand new and in pristine, unused condition are being offered for well over $1,000 on third-party seller sites like eBay.
However, most used iPhones from that era, while still maintaining some value, do not command premiums to their original sales prices. Like most obsolete technology, original iPhones that were regularly used, as opposed to being preserved as an investment, are not worth much at all.
On the other hand, Apple stock has been nothing short of a home run for investors who bought shares in 2007. By contrast, an “investor” in the first iPhone would simply have a single, out-of-date phone with a loose headphone jack, no battery life and dulled multi-touch capabilities.
Final Take To GO
No matter how much satisfaction a consumer good offers, in the long run, you’ll almost always be better off financially by investing rather than spending. The math behind the iPhone vs. Apple stock example above demonstrates this clearly.
Of course, the utility and enjoyment that users get out of products like the iPhone do have value. But from a strictly financial perspective, it pays to remember that consumer goods like iPhones and cars depreciate over time, while investments like stocks and houses tend to appreciate.
Martin Dasko and John Csiszar contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: What If You’d Invested $500 in Apple Stock Instead of Buying the First iPhone?
