Canadians are accustomed to facing higher prices compared to their American counterparts, but the pricing disparity for the latest iPhone has raised eyebrows. Apple’s new foldable phone, the iPhone Duo, was unveiled on Wednesday with prices in Canada ranging from $2,999 to $4,799 before tax. In the U.S., the starting price is $1,999 USD, equivalent to approximately $2,760 CAD, meaning Canadian consumers will pay nearly 10% more for the base model.
The steep prices sparked mockery and criticism on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo financial literacy training. Another user pointed out that in the past, one could purchase a car for a similar price.
According to University of Toronto economics professor Joseph Steinberg, the higher pricing likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo, showing less sensitivity to price compared to American consumers, allowing Apple to increase profit margins.
Steinberg noted that while it is common for electronic devices to be pricier in Canada, the exorbitant cost of the iPhone Duo stands out significantly. Speculations about Canada’s new retaliatory tariffs affecting iPhone prices were dismissed by experts, clarifying that the tariffs do not apply to the iPhone Duo as the devices 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 is primarily driven by a microchip shortage caused by the AI boom and data center expansion, leading to increased manufacturing costs. He expressed surprise at Apple’s decision to hike prices specifically for Canadian consumers but acknowledged that U.S. companies often engage in price discrimination practices.
Despite attempts to reach out to Apple for comment, CBC News has not received a response. Apple’s CEO, John Ternus, introduced the iPhone Duo during the event, marking a significant shift in the company’s flagship product under his leadership. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.