[DigitalToday reporter Yoonseo Lee (이윤서)] An analysis says that contrary to the perception that iPhone prices have surged, the real price gap between the first iPhone in 2007 and the 2026 iPhone is not as large as expected when inflation and carrier contract structures are considered together.

On Nov. 8 (local time), IT media outlet Engadget said the early iPhone's low-price image relied heavily on carrier subsidies and high-priced plans.

The iPhone Duo now starts at $1,999 (3.29 million won in South Korea). The iPhone Air is also priced at $1,100 (1.59 million won in South Korea) despite relatively disappointing camera performance and shorter battery life than the iPhone 17.

The first iPhone released in 2007 started at $499 (about 678,500 won) for the 4GB model, while the 2025 iPhone 17 is $899 (about 1.29 million won). On the surface, the difference is about $400 (about 540,000 won). Adjusted for inflation, the 2007 iPhone would be worth more than $800 today (about 1.09 million won).

In South Korea as well, carrier contracts and subsidies lowered the burden of buying early iPhones. The retail price of the 16GB iPhone 3GS released in 2009 was $199 (about 280,000 won), but buyers could receive large discounts depending on mobile fees and contract terms.

The unlocked iPhone 4 released in 2010 cost $599 (about 814,000 won), but that jumps to $920 (about 1.25 million won) when adjusted for current inflation. That is higher than the $899 iPhone 17. In other words, the structure was possible because carriers absorbed part of the handset price in anticipation of long-term customer revenue.

Differences in hardware and features also matter in price comparisons. The 2007 iPhone had no front-facing camera and did not support near field communication (NFC), which is required for Apple Pay. It also lacked AirDrop, Find My and global positioning system (GPS). By contrast, the latest iPhone can receive location information via satellite and send emergency messages even without mobile service or Wi-Fi.

The role of smartphones has also changed. In 2007 Apple did not even have a framework for third-party apps, but today's iPhone largely replaces the roles of a camera, flashlight, radio, navigation device, handheld game console and portable TV. It can also be used for productivity tasks such as document creation and spreadsheets, making it effectively the only portable device for some users.

That does not mean the price burden has fallen. Apple has maintained the base iPhone price at $799 (about 1.09 million won) until memory prices rose, and another assessment said its pricing policy has been more consistent than expected in that respect.

In the end, it was again confirmed that the core of the iPhone price controversy is not just about the device's sticker price. The low prices of the past were an illusion created by contract and plan structures, while today's prices reflect both inflation and expanded features. The latest iPhone remains expensive in absolute terms, but the analysis says it is hard to conclude prices have run out of control based on a simple comparison with 2007.