Canadians are accustomed to facing higher price tags compared to their American counterparts, but the cost 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 before taxes. In the U.S., prices start at $1,999, equivalent to approximately $2,760 in Canadian dollars, resulting in Canadians paying nearly 10 percent more for the base model.
The steep prices sparked ridicule and jests on a Canadian Reddit forum, with one user suggesting that anyone spending such a hefty sum on a phone should undergo a financial literacy course. Another user humorously pointed out that the price used to be enough to buy a car.
According to University of Toronto economics professor Joseph Steinberg, the price hike likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo at a higher price, suggesting they are less sensitive to price fluctuations compared to American consumers. He mentioned that while it’s common for electronic devices and other products to be pricier in Canada, the exorbitant cost of the iPhone Duo stands out.
Contrary to speculation, experts clarified that Canada’s new retaliatory tariffs on U.S. products do not impact iPhone prices. Although smartphones are among the U.S. products subject to tariffs, Canada does not significantly import smartphones from the U.S. Additionally, the iPhone Duo is manufactured in China, exempting it from Canadian tariffs as it is considered a Chinese product.
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 industry’s expansion and the proliferation of data centers. This surge in demand has led to increased manufacturing costs. Antweiler expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers, noting that price discrimination of 10 to 15 percent is common in the Canadian market due to 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 launch event, marking a significant change to the company’s flagship product in his first public appearance since assuming the leadership role. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.