Canadians are accustomed to encountering higher price tags compared to their U.S. counterparts, but the price disparity for the latest iPhone has caught many off guard. Apple’s newly unveiled foldable phone, the iPhone Duo, is being sold in Canada for prices ranging from $2,999 to $4,799 before taxes. In the United States, prices start at $1,999 US, equivalent to approximately $2,760 Canadian dollars, meaning Canadian consumers will have to shell out nearly 10 percent more for the base model.
The steep pricing elicited ridicule and jests on a Canadian Reddit forum, with one user suggesting that those willing to spend such amounts on a phone should undergo financial literacy training. Another user humorously remarked that one could have purchased a car for the same price in the past.
According to University of Toronto economics professor Joseph Steinberg, the increase in price likely indicates that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo, who are less sensitive to price compared to American consumers, allowing Apple to raise profit margins slightly.
Steinberg noted that while it is common for electronics and other products to be pricier in Canada, the exorbitant cost of the iPhone Duo makes it particularly remarkable. Speculation had arisen that Canada’s new retaliatory tariffs on U.S. products might contribute to the higher iPhone prices; however, experts clarified that this is not the case in this scenario.
Although smartphones are among the U.S. products subject to a 50% tariff, Steinberg explained that Canada does not significantly import smartphones from the U.S. Additionally, the iPhone Duo is manufactured in China, so it is not affected by Canada’s tariffs on U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, highlighted that the surge in smartphone prices is a result of the global microchip shortage, driven by the AI industry’s expansion and the proliferation of data centers. He expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers, although he mentioned that U.S. companies often engage in price discrimination practices.
Antweiler attributed the price difference to Canada’s smaller market size compared to the U.S., stating that Canadian consumers typically pay slightly higher prices due to market dynamics. Apple has yet to respond to CBC News’ request for comment. Apple CEO John Ternus introduced the iPhone Duo during its unveiling event on Wednesday, marking a significant evolution of the company’s flagship product under his leadership. Pre-orders for the Duo will commence on Oct. 17 with availability slated for Oct. 23.