Canadians are accustomed to encountering higher price tags compared to their American counterparts, but the cost disparity for the latest iPhone has raised eyebrows. Apple’s recently unveiled foldable phone, the iPhone Duo, is being sold in Canada for prices ranging from $2,999 to $4,799 before taxes. In contrast, prices in the U.S. start at $1,999, equivalent to around $2,760 Canadian dollars, meaning Canadians will be paying nearly 10% more for the base model.
The steep prices sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting that individuals splurging on such expensive phones should undergo financial literacy training. Another user humorously remarked that one could have previously purchased a car for the same amount.
According to University of Toronto economics professor Joseph Steinberg, the higher pricing likely indicates that Apple identified a segment of the Canadian market willing to invest in a “super-premium product” like the Duo, implying they are less sensitive to price changes compared to American consumers. Steinberg noted that while it is common for electronics and other goods to be pricier in Canada, the exorbitant 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 U.S. products subject to tariffs, Steinberg clarified that Canada does not significantly import these devices from the U.S. Additionally, since the phones are manufactured in China, they are not affected by the tariffs as they are considered products originating from China, not the U.S.
The global rise in smartphone prices, including the iPhone Duo, is attributed to a microchip shortage stemming from the AI boom and the widespread establishment of data centers, leading to increased manufacturing costs. While price hikes are common for U.S. companies targeting Canadian markets, Werner Antweiler, chair of international trade policy at the University of British Columbia, expressed surprise at Apple’s decision to raise prices more specifically for Canadian consumers.
Antweiler highlighted that price discrimination of 10-15% is not unusual in the Canadian market due to its smaller size compared to the U.S. He emphasized that the surge in smartphone prices reflects the broader trend in the electronics industry influenced by the global microchip shortage.
Apple has not responded to CBC News’ request for comment. The iPhone Duo was unveiled by Apple CEO John Ternus during a significant shift in the company’s flagship product, marking his first presentation since assuming the leadership role. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.