Canadians are accustomed to encountering higher prices compared to their U.S. counterparts, but the pricing disparity for the latest iPhone release has raised eyebrows. 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 $2,760 in Canadian dollars, resulting in Canadians paying nearly 10% more for the base model.
This price discrepancy sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo financial literacy training. Another user humorously noted that the phone’s cost was historically equivalent to purchasing a car.
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 purchase a “super-premium product” like the Duo, showing lower sensitivity to price compared to American consumers. Steinberg emphasized that while it is common for electronics and other goods to be pricier in Canada, the exorbitant cost of this phone stands out significantly.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. Although smartphones are among the U.S. products subjected to tariffs, Canada does not significantly import these devices from the U.S. The iPhone Duo, manufactured in China, is not affected by Canadian tariffs since it is considered a product originating from China and not the U.S.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the general rise in smartphone prices is attributed to a global microchip shortage driven by the AI industry’s growth and the proliferation of data centers. He expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers, noting that such price discrepancies by U.S. companies are not uncommon due to market differences.
Apple has not responded to CBC News’ request for comment. Apple CEO John Ternus introduced the iPhone Duo at the unveiling event, marking a significant departure for the company’s flagship product under his leadership. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.