Canadians are no strangers to paying higher prices compared to their American counterparts, but the cost disparity for the latest iPhone release has raised eyebrows. Apple’s newest foldable phone, the iPhone Duo, is being sold in Canada for prices ranging from $2,999 to $4,799 before taxes. In the United States, prices start at $1,999, equivalent to $2,760 Canadian dollars, making Canadians pay almost 10 percent more for the base model.
The price hike sparked criticism and humor on a Canadian Reddit forum, with one user suggesting that individuals spending that much on a phone should undergo a financial literacy course. Another user pointed out that the amount could have previously bought a car.
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 at a higher price, compared to American consumers. He mentioned that while it’s not uncommon for electronics to cost more in Canada, the exorbitant price of this phone makes it particularly noticeable.
Contrary to speculation, experts have clarified that Canada’s newly imposed retaliatory tariffs on U.S. products have not affected the iPhone Duo pricing. Steinberg explained that despite smartphones being among the U.S. products subjected to tariffs, Canada does not significantly import devices from the U.S. Moreover, since the iPhones are manufactured in China, they are considered Chinese products and not affected by the tariffs.
Werner Antweiler, chair in international trade policy at the University of British Columbia, attributed the general rise in smartphone prices to the global microchip shortage resulting from the AI industry’s expansion and the proliferation of data centers. He noted that the surge in manufacturing costs due to high demand is impacting consumer electronics prices. Antweiler expressed surprise at Apple’s decision to increase prices more for Canadian consumers, although he mentioned that price discrimination is common among U.S. companies.
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 company’s flagship product during his first event in the leadership role. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.
