Canadians are accustomed to encountering higher price tags compared to their American counterparts, but the cost disparity for the latest iPhone has raised eyebrows. Apple’s new 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 about $2,760 in Canadian dollars, making Canadians pay nearly 10% more for the base model.
The considerable price increase prompted mockery and criticism on a Canadian Reddit forum, with some users suggesting that spending such amounts on a phone should require a financial literacy class. Another user humorously mentioned that one could have bought a car for the same price in the past.
According to University of Toronto economics professor Joseph Steinberg, the higher price tag likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo, which is less price-sensitive compared to American consumers. Steinberg highlighted that elevated prices for electronics and other goods in Canada are not uncommon but emphasized that the exorbitant cost of the iPhone Duo stands out.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. While smartphones are included in the list of U.S. products subject to tariffs, Steinberg explained that Canada does not significantly import smartphones from the U.S. Moreover, the iPhone Duo is manufactured in China, exempting it from Canadian tariffs targeting U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, attributed the general rise in smartphone prices to the global microchip shortage spurred by the AI industry’s growth and data center expansion, leading to increased manufacturing costs. He expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers but noted that price discrimination, with a 10 to 15% variation, is a common strategy among U.S. companies targeting the Canadian market due to its smaller size.
Apple has yet to respond to CBC News inquiries regarding the price increase. CEO John Ternus introduced the iPhone Duo during a recent event, marking a significant shift in 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.
