Canadians are accustomed to encountering higher price points compared to their American counterparts, but the cost disparity for the latest iPhone has raised eyebrows. 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 around $2,760 Canadian dollars, leading to Canadians paying nearly 10% more for the base model.
The substantial price difference sparked ridicule and jests on a Canadian Reddit forum, with one user suggesting that anyone spending such a significant amount on a phone should undergo a financial literacy course. Another commenter pointed out that one could have previously purchased a car for the same amount.
According to University of Toronto economics professor Joseph Steinberg, the price hike indicates that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo at a higher price point than American consumers. Steinberg highlighted that while it’s common for electronics and other goods to be pricier in Canada, the exceptionally high cost of this phone stands out.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. Despite smartphones being among the products subject to tariffs, the devices are not significantly imported from the U.S. to Canada. Additionally, the iPhone Duo is manufactured in China, exempting it from Canadian tariffs targeting U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, attributes the general rise in smartphone prices to the global microchip shortage driven by the AI industry’s expansion and data center proliferation. He expressed surprise at Apple’s decision to increase prices more for Canadian consumers but noted that U.S. companies often engage in price discrimination practices due to the smaller market size in Canada compared to the U.S.
Apple, led by CEO John Ternus, introduced the iPhone Duo at a recent event, marking a significant shift in the flagship product lineup. Pre-orders for the Duo will commence on October 17, with the phone set to be available on October 23. CBC News reached out to Apple for comment but has not received a response yet.