The iPhone also featured a 2-megapixel camera.
The first-generation iPhone just sold at auction for $190,372.80 (approximately Rs 1,29,80,000). The 2007 Apple iPhone originally bought for $599, was sealed and in exceptional condition, the auction listing said.
The LCG Auctions described the product as a "popular high-end collectable" and "exceedingly rare".
The iPhone collectors considered the model to be "Holy Grail" due to its extreme scarcity, BBC reported.
"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," LCG Auctions founder Mark Montero said in a statement.
"We congratulate the winners, our consignors and all of the bidders for making this one of the most active auctions in our history."
Steve Jobs unveiled the original iPhone in 2007 and Apple was able to sell millions of units.
The iPhone also featured a 2-megapixel camera.
Meanwhile, the latest iPhone 14 comes with 128 GB storage and has a 12-megapixel camera with an ultra-wide lens.
According to The Guardian, LCG Auctions sold another first-generation iPhone for $63,356 in February. Another firm, Wright Auctions, sold a first-generation iPhone for $40,320 in March.