Canadians are accustomed to observing higher price tags compared to their counterparts in the U.S., but the price disparity for the latest iPhone 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, excluding tax. In the U.S., prices start at $1,999 US, equivalent to about $2,760 in Canadian dollars, resulting in Canadians paying nearly 10% more for the base model.
The revelation of the steep prices sparked mockery and jests on a Canadian Reddit forum, with one user suggesting that individuals willing to spend such amounts on a phone should be required to take a financial literacy class. Another user pointed out that in the past, the same amount could have bought a car.
According to University of Toronto economics professor Joseph Steinberg, the price hike likely indicates that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo, who are less sensitive to price changes compared to American consumers, allowing Apple to increase its profit margin.
Steinberg mentioned that while it is common for electronics and other products to be more expensive in Canada, the exorbitant price of the iPhone Duo stands out prominently. Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products have not influenced the iPhone Duo’s pricing. Despite smartphones being among the products subject to a 50% tariff, Canada does not significantly import phones from the U.S., and the iPhone Duo, manufactured in China, is not affected by the tariffs.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the global rise in smartphone prices is primarily due to the microchip shortage caused by the AI boom and the expansion of data centers, increasing manufacturing costs. He noted that while it is surprising to see Apple raise prices specifically for Canadian consumers, it is a common strategy for U.S. companies to practice price discrimination, with Canadian markets typically willing to pay more due to being smaller compared to the U.S.
CBC News reached out to Apple for a response, but no comment has been received yet. Apple CEO John Ternus led the unveiling of the iPhone Duo, marking a significant change to the company’s flagship product in his first event since assuming the leadership role. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.