Canadians are accustomed to encountering higher prices compared to their counterparts in the U.S., but the pricing disparity for the latest iPhone has stirred attention. 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, which equates to around $2,760 CAD – signifying that Canadians will need to pay nearly 10% more for the base model.
This price discrepancy sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo financial literacy training. Another user humorously pointed out that one could have previously purchased a car for the same amount.
According to University of Toronto economics professor Joseph Steinberg, the increase in price likely indicates that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo, which is “less sensitive to price” compared to American consumers, allowing Apple to slightly raise the margin.
Steinberg mentioned that while it is common for electronics and other products to be pricier in Canada, the exorbitant cost of this phone stands out prominently. Some had speculated that Canada’s newly imposed retaliatory tariffs on U.S. products could have influenced iPhone prices, but experts clarified that this was not a factor in this case.
Despite smartphones being included in the list of U.S. products subject to a 50% tariff, Steinberg highlighted that Canada does not significantly import these devices from the U.S. Moreover, Canada’s tariffs do not impact the iPhone Duo as the phones are manufactured in China, thereby being classified as a Chinese product rather than a U.S. one.
Werner Antweiler, chair in international trade policy at the University of British Columbia, noted that the surge in smartphone prices globally is primarily due to the ongoing microchip shortage caused by the AI boom and the expansion of data centers, leading to increased manufacturing costs. Antweiler expressed surprise at Apple’s decision to raise prices more for Canadian consumers, attributing it to typical price discrimination practices by U.S. companies.
Antweiler emphasized that price discrimination of 10 to 15% is not uncommon in the Canadian market, primarily because of its smaller size compared to the U.S. CBC News reached out to Apple for comment without receiving a response.
Apple CEO John Ternus introduced the iPhone Duo during the recent event, marking a significant change to the company’s flagship product in his inaugural event as CEO. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.