Canadians are accustomed to encountering higher prices compared to Americans, but the price disparity for the latest iPhone has caught attention. Apple’s new foldable phone, the iPhone Duo, was unveiled on Wednesday with prices ranging from $2,999 to $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 Canadians paying nearly 10% more for the cheapest model.
The steep prices sparked ridicule and jests on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo financial literacy classes, while another commented on the high cost compared to purchasing a car.
According to University of Toronto economics professor Joseph Steinberg, the higher price tag likely indicates that Apple identified a segment of Canadian consumers willing to purchase a “super-premium product” like the Duo, suggesting they are less sensitive to price than American consumers, allowing Apple to increase profit margins.
Despite speculation about Canada’s new retaliatory tariffs on U.S. products impacting iPhone prices, experts clarified that this is not the case. While smartphones are among the U.S. products subject to tariffs, Canada does not significantly import these devices from the U.S. Additionally, the iPhone Duo is manufactured in China, exempting it from Canadian tariffs on U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, highlighted that the global rise in smartphone prices is primarily due to the microchip shortage caused by increased demand from the AI and data center industries. He expressed surprise at Apple’s decision to raise prices more for Canadian consumers, noting that price discrimination is common, with Canadian markets typically willing to pay slightly more than U.S. markets.
Apple has not responded to CBC News’ request for comment. The unveiling of the iPhone Duo was led by Apple CEO John Ternus in his first major event since assuming the leadership role. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.