The 8GB original iPhone launched in 2007 with a retail price of $599. Apple released the first-generation iPhone in the United States on June 29, 2007, with both the 8GB model and a lower-capacity 4GB version.
The 8GB phone cost $599, while the 4GB model cost $499. Both prices required a two-year AT&T wireless contract. The device combined a mobile phone, iPod, and internet communicator in one touchscreen product, making its launch one of Apple's most closely watched product events.
The $599 price did not last long. In September 2007, Apple reduced the 8GB model to $399 and discontinued the 4GB version. The abrupt cut angered some early buyers, so Apple offered them a $100 Apple Store credit.
That later $399 price is the most common source of confusion. It was the post-launch price, not the original launch price. Apple introduced a 16GB first-generation iPhone in February 2008 for $499.