Canadians are accustomed to facing higher prices compared to Americans, but the cost disparity for the latest iPhone model has caught many off guard. 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 USD, equivalent to about $2,760 CAD, making Canadian consumers pay nearly 10% more for the base model.
The steep prices sparked ridicule and jests on a Canadian Reddit forum, with one user suggesting that anyone splurging that much on a phone should take a financial literacy course. Another user humorously pointed out that one could have purchased a car for the same amount in the past.
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 purchase a “super-premium product” like the Duo, which suggests they are less sensitive to price changes compared to American consumers. Steinberg mentioned that it is not uncommon for electronics and other products to be pricier in Canada, but the exceptionally high cost of the iPhone Duo stands out.
Speculations that Canada’s retaliatory tariffs on U.S. products might have affected the iPhone prices were debunked by experts. Although smartphones are among the U.S. products subject to tariffs, Canada does not import iPhones significantly from the U.S. The iPhone Duo is manufactured in China, exempting it from Canadian tariffs on U.S. products.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the surge in smartphone prices globally is due to the microchip shortage caused by the AI industry’s growth and the proliferation of data centers. This high demand has led to increased manufacturing costs. Antweiler expressed surprise at Apple’s decision to raise prices more for Canadian consumers but noted that price discrimination, especially against smaller markets like Canada, is not uncommon for U.S. companies.
Apple has not responded to CBC News’ request for comment. The unveiling of the iPhone Duo, led by Apple CEO John Ternus, marked a significant shift in the company’s flagship product during his first event since assuming the leadership position. Pre-orders for the iPhone Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.