Canadians are accustomed to encountering higher price tags compared to their U.S. 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 contrast, prices in the U.S. start at $1,999, equivalent to $2,760 in Canadian dollars, resulting in Canadians having to shell out nearly 10% more for the base model.
This pricing discrepancy sparked criticism and humor on a Canadian Reddit forum, with one user suggesting that individuals willing to spend such amounts on a phone should undergo a financial literacy course. Another user humorously mentioned that one used to be able to purchase a car for the same price.
According to University of Toronto economics professor Joseph Steinberg, the higher pricing likely indicates that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo, which is “less price sensitive” compared to American consumers. Steinberg highlighted that while it’s common for electronics and other products to be pricier in Canada, the exorbitant cost of this phone makes it particularly noticeable.
Dispelling speculations, experts clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo pricing. Despite smartphones being among the U.S. goods subject to tariffs, Canada does not significantly import these devices from the U.S. The iPhone Duo, manufactured in China, is considered a Chinese product, exempting it from Canadian tariffs on U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the global increase in smartphone prices, including Apple’s, is attributed to the ongoing microchip shortage driven by the AI industry’s growth and data center expansion. Price hikes for Canadian consumers by Apple are not uncommon among U.S. companies, as they often practice price discrimination, leveraging the fact that the Canadian market typically accepts higher prices, albeit by a margin of 10 to 15 percent due to Canada’s smaller market size.
Apple has not responded to CBC News’ requests for comments. The iPhone Duo was unveiled by Apple CEO John Ternus in his first leadership event since assuming the role, with pre-orders set to begin on October 17 and the phone becoming available on October 23.