the iphone launched at $499
EDIT: hmm.. I guess iphone 1 was $499 or $599 and that required a 2-year AT&T contract. Don't know what the actual price was.
I do know the top iphone 17 pro max is $1,999.
but it does have 2tb of storage, which is amazing in a different way.
When the iPhone 4 launched on Verizon in 2011, you could either spend $200 and get locked into a 2-year contract, $300 and get locked into a 1-year contract, or buy the thing outright for $650. Since you didn't get a discount for bringing your own phone to Verizon, it was more cost-effective to get the subsidized phone.
The basic iPhone 17 starts at $799
The 17e is only $599
If anything the iPhone is getting cheaper in real terms, not more expensive
They have also become more capable and it seems having a more capable phone has really benefited people.
also: by your numbers that means $1,999 in 2026 would have been $3200 in 2007.