Canadians are accustomed to observing higher price tags compared to their U.S. counterparts, but the pricing discrepancy for the latest iPhone model has raised eyebrows. Apple’s recently unveiled 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 approximately $2,760 in Canadian dollars, resulting in Canadians having to shell out nearly 10 percent more for the base model.
The notable price hike sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting individuals splurging on such a costly phone should undergo financial literacy training. Another user remarked that the price could have bought a car in the past.
According to University of Toronto economics professor Joseph Steinberg, the increased pricing likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo, which is less sensitive to price changes compared to American consumers, allowing Apple to boost profit margins.
Steinberg highlighted that while it is common for electronics and other items to be pricier in Canada, the exceptionally high cost of the iPhone Duo stands out. Refuting speculation that Canada’s retaliatory tariffs on U.S. products might have influenced the iPhone pricing, experts clarified that this was not the case. Despite smartphones being among the U.S. products subject to tariffs, Steinberg noted that Canada does not significantly import these devices from the U.S. Furthermore, the iPhone Duo is manufactured in China, exempting it from Canadian tariffs on U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the surge in smartphone prices globally is attributed to the microchip shortage driven by the AI industry’s expansion and the proliferation of data centers, leading to heightened manufacturing costs. While acknowledging the practice of price discrimination by U.S. companies, Antweiler expressed surprise at Apple’s decision to raise prices more for Canadian consumers, a practice he deemed common due to the smaller market size in Canada compared to the U.S.
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 in his inaugural event since assuming the leadership role. Pre-orders for the iPhone Duo will commence on Oct. 17, with the phone hitting the market on Oct. 23.