Canadians are accustomed to encountering higher prices compared to Americans, but the pricing disparity for the latest iPhone has raised eyebrows. Apple’s newest 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 $2,760 Canadian dollars, making Canadian consumers pay nearly 10% more for the base model.
The steep prices triggered criticism and humor on a Canadian Reddit forum, with one user suggesting that anyone spending that much on a phone should undergo a financial literacy course. Another user remarked that in the past, that amount could buy a car.
Economics professor Joseph Steinberg from the University of Toronto believes that the price increase indicates Apple’s recognition of a subset of Canadians willing to purchase a “super-premium product” like the Duo, showing less price sensitivity compared to American consumers, allowing Apple to increase profit margins.
While some speculated that Canada’s retaliatory tariffs on U.S. products might hike iPhone prices, experts clarified that this is not the case. The tariffs on U.S. products, including smartphones, do not affect iPhone Duo pricing in Canada since the phones are manufactured in China, not the U.S.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the global rise in smartphone prices, including Apple’s, is due to the microchip shortage caused by the AI boom and data center expansion, leading to increased manufacturing costs. He noted that price discrimination by U.S. companies, such as Apple, is not uncommon, with Canadian consumers often paying more due to market size differences.
Apple has not responded to CBC News’ request for comment. The iPhone Duo was unveiled by Apple CEO John Ternus, marking a significant change to the company’s flagship product. Pre-orders for the Duo will commence on Oct. 17, with the phone available for purchase on Oct. 23.