The sale, held by auctioneers LCG Auctions, began on June 30 with a starting price of $10,000, and attracted a total of 28 bids by the time it closed on Sunday.

The unidentified buyer purchased the brand new, sealed and never activated 1^st generation device – which comes complete with 4GB of storage and a 2-megapixel camera – for almost 400 times its original $499 retail price.

It had been estimated that the “elusive” iPhone would sell for between $50,000 to $100,000.

The final price included a buyer’s premium that will go directly to LCG Auctions.

“The original 4GB model is considered a ‘Holy Grail’ amongst iPhone collectors,” LCG said on the listing page – revealing that this specific phone was being sold by a true Apple insider: someone who was part of the tech giant’s original engineering team when the iPhone first launched.

“Collectors and investors would be hard pressed to find a superior example,” the auctioneer insisted, labeling the device an “extraordinary collectible.”

With the 8GB model priced just $100 higher than its 4GB counterpart upon the smartphone’s release 16 years ago, consumers largely favored the 8GB model – which hampered sales of the 4GB phone and ultimately saw it discontinued by Apple just two months after its release.

Today, that means the 1st generation model with less storage is rarer – and more sought after by collectors.

“In the last few years, the interest in important and relatable pop culture collectibles has exploded into the mainstream, especially for items that are well-preserved and in factory-sealed condition,” LCG Auctions founder Mark Montero told Fortune on Monday.

“The original iPhone checks all the boxes and has proven to be an iconic piece in the eyes of collectors.  This one was unique in that it was the first 4GB model to hit the auction block. A new bar was set last night – we are thrilled to be a part of this fantastic record-breaking sale.”

Modern iPhones look much different from the one auctioned on Sunday, with the iPhone 14 boasting a 12-megapixel camera and at least 128GB of storage, among various other features – as well as a price tag of at least $799.

Despite its major makeover, however, Apple’s newer smartphones have struggled to sustain the same amount of hype as their predecessors.

Early iPhone releases saw crowds gather outside Apple stores all over the world – often lining the streets for hours – to be among the first to bag the hot commodities.

However, sales of new models have slowed in recent years, raising questions about whether Apple’s smartphone can still drum up consumer buzz.

While newer models start losing their value as soon as they’re bought, old iPhone models have maintained their appeal, becoming collectors’ items among Apple enthusiasts.

Late last year, an unopened 8GB iPhone from the 2007 release sold at auction for more than $39,000, while another – still in its shrink wrap – was sold for a record $63,356  in February.  

Back in early 2007, Apple CEO Steve Jobs gave the world its first-ever glimpse of the “revolutionary” iPhone at the Macworld Expo in San Francisco. It hit shelves in June of that year, selling 1 million units within three months and going on to be named Time magazine’s Invention of the Year.