Canadians are accustomed to encountering higher prices compared to their U.S. counterparts, but the price discrepancy for the latest iPhone has raised eyebrows. Apple’s newly unveiled foldable phone, the iPhone Duo, is priced between $2,999 and $4,799 in Canada before taxes. In the U.S., prices start at $1,999, equivalent to around $2,760 in Canadian dollars, resulting in nearly a 10% higher cost for the base model in Canada.
The steep prices prompted mockery and jests on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo a financial literacy class. Another user humorously noted that one could have previously purchased a car for the same price.
According to University of Toronto economics professor Joseph Steinberg, the price increase likely indicates that Apple identified a segment of the Canadian market willing to pay for a “super-premium product” like the Duo, implying they are less sensitive to price hikes compared to American consumers. Steinberg emphasized that while it is common for electronics and other goods to be pricier in Canada, the exceptionally high cost of the iPhone Duo stands out.
Regarding speculations about Canada’s new retaliatory tariffs affecting iPhone prices, experts clarified that this is not the case. Although smartphones are subjected to a 50% tariff on a list of U.S. products, Canada does not substantially import phones from the U.S. Additionally, the iPhone Duo is exempt from these tariffs as it is manufactured in China, thus considered a Chinese product.
Werner Antweiler, chair in international trade policy at the University of British Columbia, pointed out that the escalating prices of smartphones globally are primarily due to the microchip shortage caused by the AI industry’s expansion and the rising demand for data centers. He expressed surprise at Apple’s decision to raise prices more for Canadian consumers, attributing this price discrimination to typical market behavior where Canadians often pay slightly higher prices due to the country’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, marking a significant shift in the company’s flagship product during his first leadership event. Pre-orders for the Duo commence on Oct. 17, with the phone becoming available on Oct. 23.