Canadians are no strangers to paying higher prices compared to Americans, but the cost disparity for the latest iPhone release has raised eyebrows. Apple’s new foldable phone, the iPhone Duo, is being sold in Canada for prices ranging between $2,999 and $4,799 before taxes. In contrast, prices in the U.S. start at $1,999, equivalent to around $2,760 in Canadian dollars, resulting in Canadians having to shell out nearly 10 percent more for the base model.
The steep prices sparked ridicule and banter on a Canadian Reddit forum, with users suggesting that spending such amounts on a phone should require a financial literacy class. Some pointed out that one used to be able to purchase a car for the same price in the past.
According to University of Toronto economics professor Joseph Steinberg, the price increase likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo, and thus, less sensitive to pricing compared to American consumers. Steinberg added that while it is common for electronics and other goods to be pricier in Canada, the exceptionally high cost of this phone stands out.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo pricing. Although smartphones are among the U.S. products facing tariffs, Canada does not import these devices significantly from the U.S. Moreover, since the phones are manufactured in China, they are not subject to the tariffs on U.S. goods imposed by Canada.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the global rise in smartphone prices is mainly due to the microchip shortage caused by the surge in artificial intelligence and data center expansion. He expressed surprise at Apple’s decision to hike prices more for Canadian consumers, noting that such price variations are common among U.S. companies due to market demand and size differences.
Apple has not responded to CBC News’ request for comment. The unveiling of the iPhone Duo was led by Apple CEO John Ternus, marking a significant shift in the flagship product during his first event as the company’s leader. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.
