Canadians are accustomed to encountering higher prices compared to their counterparts in the U.S., but the price discrepancy for the latest iPhone release has caused some surprise. Apple’s new foldable phone, the iPhone Duo, was unveiled on Wednesday with prices in Canada ranging from $2,999 to $4,799 before taxes. In comparison, prices in the U.S. start at $1,999, equivalent to $2,760 in Canadian dollars, resulting in Canadians having to pay nearly 10% more for the base model.
The steep prices garnered criticism and humor on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo a financial literacy class. Another user humorously remarked that one could have previously purchased a car for the same price.
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 at a higher 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 the iPhone Duo is particularly noteworthy.
Despite speculation that Canada’s retaliatory tariffs on U.S. products could impact iPhone prices, experts clarified that this is not a factor in the current situation. Although smartphones are among the U.S. products subjected to tariffs, Canada does not import them in significant quantities from the U.S. Additionally, the iPhone Duo is manufactured in China, making it exempt 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 stemming from the AI industry’s growth and the rapid expansion of data centers. He expressed surprise at Apple’s decision to increase prices specifically for Canadian consumers but noted that price discrimination by U.S. companies, targeting smaller markets like Canada, is not uncommon.
Apple has not responded to CBC News’ request for comment. The unveiling of the iPhone Duo was led by Apple CEO John Ternus, marking a significant shift in the company’s flagship product. Pre-orders for the Duo will start on Oct. 17, with the phone becoming available on Oct. 23.