Canadians are accustomed to encountering higher prices compared to their U.S. counterparts, but the price 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, excluding taxes. In contrast, prices in the U.S. start at $1,999, which equals around $2,760 in Canadian dollars, implying that Canadians will need to shell out nearly 10% more for the base model.
The surprising price tags sparked mockery and jest on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo a financial literacy course. Another user humorously pointed out that in the past, the same amount could have purchased a car.
University of Toronto economics professor Joseph Steinberg believes that the price hike indicates Apple’s recognition of a segment of the Canadian population willing to invest in a “super-premium product” like the Duo, showing less price sensitivity compared to American consumers, hence enabling Apple to increase profit margins. Steinberg also mentioned that while it is common for electronics and other products to be pricier in Canada, the exorbitant cost of this particular phone makes it stand out.
Contrary to speculation, experts confirmed that Canada’s new retaliatory tariffs on U.S. products have no impact on the iPhone Duo’s pricing. Even though smartphones are among the products subject to tariffs, Canada does not significantly import these devices from the U.S. Furthermore, the iPhone Duo is manufactured in China, exempting it from Canadian tariffs as it is considered a product originating in China, not the U.S.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the surge in smartphone prices globally is due to the ongoing microchip shortage driven by the AI industry’s growth and the rapid expansion of data centers, leading to increased manufacturing costs. Antweiler expressed surprise at Apple’s decision to raise prices more for Canadian consumers, noting that price discrimination is not uncommon, with Canadian markets typically willing to pay slightly higher prices compared to the U.S. due to Canada’s smaller market size.
Apple has not responded to CBC News’ request for comment. The unveiling of the iPhone Duo was led by Apple CEO John Ternus during his first event in the leadership role. Pre-orders for the Duo will commence on October 17, with the phone hitting the market on October 23.