On January 9, 2007, Steve Jobs announced the iPhone at the Macworld convention, receiving substantial media attention. Jobs announced that the first iPhone would be released later that year. On June 29, 2007, the first iPhone was released.

Initially priced at US $499 and US $599 for the 4GB models and 8GB models respectively, the iPhone went on sale on June 29, 2007. Apple closed its stores at 2:00 pm local time to prepare for the 6:00 pm iPhone launch, while hundreds of customers lined up at stores nationwide.

Early estimates by technology analysts estimated sales of between 250,000 and 700,000 units in the first weekend alone, with strong sales continuing after the initial weekend. As part of their quarterly earnings announcement, AT&T reported that 146,000 iPhones were activated in the first weekend. Though this figure does not include units that were purchased for resale on eBay or otherwise not activated until after the opening weekend, it is still less than most initial estimates. It is also estimated that 95% of the units sold are the 8GB model.

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