Sealed Original 2001 iPod Sells for a Record-Breaking $29,000

Although the original 2007 iPhone has been making headlines among high-flying auctions in recent months, the Apple mobile device that started it all hasn’t been entirely forgotten.

No, we’re not talking about the ill-fated Newton. That was arguably a spiritual predecessor to what later became the iPhone and iPad, but the same could be said for a myriad of other devices made by Apple’s competitors. The Newton was a short-lived product of a bygone era — a time when Steve Jobs had been pushed out of Apple and was working on other projects.

However, in 2001, only four years after Jobs’ triumphant return, Apple unveiled the iPod — a portable media player that would take the world by storm. For its era and what it was, the iPod was every bit as successful and popular as the iPhone would later become, so it’s no surprise that early iPods in mint condition are still highly sought after by collectors.

Over the years, we’ve seen sealed-in-box iPods listed for insane amounts up to $200,000 on sites like eBay, but those are asking prices; they’ve never actually sold for anything close to that, although they routinely go for five figures.

However, according to the collectibles investing platform Rally, the record for the most valuable first-generation iPod has just been broken — and it’s been done in an unusual way.

Rally isn’t an auction house or an online seller but rather an organization that offers shares to those who wish to invest in collectibles that are likely to appreciate in value. Among other things, this includes sports memorabilia, video games, classic cars, and vintage technology. That last one is where the iPod comes in.

The iPod in question was purchased for $399 plus tax in December 2001 at the Willowbrook Mall Apple Store in Plano, Texas as a Christmas gift. For whatever reason, the recipient never opened it, and it remained on a shelf for nearly two decades before Rally came into possession of it.

In December 2021, Rally offered 5,000 shares of the iPod to investors at $5 each, placing the total value of the factory-sealed iPod at $25,000. This week, the firm made a buyout offer to those investors for $29,000, representing a 16% return since the initial offering and a 26.1% return since the last time shares in the device were traded. Shareholders had to vote on whether or not to accept the deal, with over 60% accepting the terms, thereby setting a new record on the price for an original iPod.

Rally also operates a museum at 446 Broadway in downtown Manhattan where it displays its collection of memorabilia and other collectibles. It’s billed as “the only museum where you can own everything inside,” and a virtual tour is also available via the website, with options to “invest” in such items as a 1955 Porsche 356 Speedster, a signed Andy Warhol Marilyn Monroe print, or a complete set of Pokemon first-edition cards.

Still, $29,000 is far from the highest price that’s even been paid for a vintage iPod. In 2016, a rare limited-edition 2004 U2 iPod went up on eBay, where it sold for $90,000.

This special edition version of the fourth-generation iPod featured a black front face and red click wheel in an era when every other iPod was classic Apple white. The U2 iPod was also emblazoned with the band members’ signatures on the back. It originally came with a redemption code to download the entire U2 music collection from the iTunes Store at a discount — although it’s uncertain if that code would still work today. Apple made four versions of the U2 iPod, and it’s unclear which model the Daily Mail is referring to, as the report cites a 2004 version with a 30GB capacity — a configuration that didn’t exist until a U2 special edition of the fifth-generation iPod was released in 2006.

Meanwhile, a sealed original 4GB iPhone sold for a record-breaking $190,000 at auction last month. The 4GB model commanded a higher price than other original iPhones that have gone up on the auction block because of its rarity; Apple only sold the 4GB version for 62 days before discontinuing it and significantly dropping the price of the 8GB model.