"This factory-sealed, first-release example is in exceptional condition. Virtually flawless along the surface and edges, the factory seal is clean with correct seam details and tightness," the LGC Auctions website reads.
"Labels on the reverse are correctly pristine beneath the seal."
Mark Montero, the LCG Auctions founder, said they expected "fervent" bidding for the piece of technological history.
"We expected the bidding for this item to be fervent, and it did not disappoint as a handful of avid and sophisticated collectors drove the price from just over $10,000 on Sunday afternoon to this record-setting amount by Sunday night," he said in a statement.
He also thanked consignors, winners, and bidders for helping the auction become "one of the most active auctions in our history."
In addition to the 8GB of storage the phone provided, it also featured a 2-megapixel camera.
For reference, the base model of the newly released iPhone 14 has 128GB of storage and dons a 12-megapixel main camera equipped with an ultra-wide lens.
The iPhone first came to the forefront with its launch in June 2007.
Steve Jobs dubbed the device a combination of "an iPod, a phone, and an internet communicator."
It eventually revolutionised the smartphone market and catapulted the race to offer better gadgets to people.
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