Canadians are accustomed to encountering higher price tags compared to Americans, but the cost disparity for the latest iPhone has stirred some surprise. Apple’s newly unveiled foldable phone, the iPhone Duo, is being sold in Canada for prices ranging from $2,999 to $4,799 before taxes. In the U.S., prices start at $1,999 USD, equivalent to about $2,760 CAD, resulting in Canadians needing to shell out almost 10% more for the base model.
The steep prices sparked mockery and jests on a Canadian Reddit forum, with one user suggesting that individuals splurging that much on a phone should undergo financial literacy classes. Another commenter remarked, “You could buy a car for that price in the past.”
University of Toronto economics professor Joseph Steinberg believes that the price increase indicates Apple’s recognition of a segment of the Canadian population willing to invest in a “super-premium product” like the Duo, suggesting that these consumers are less price-sensitive compared to Americans. He points out that it’s not uncommon for electronics and other goods to be pricier in Canada, but the exorbitant cost of this phone makes it particularly noticeable.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo pricing. While smartphones are among the U.S. products subject to tariffs, the iPhone Duo, manufactured in China, is not imported from the U.S. Additionally, the tariffs do not apply to products originating from China.
Werner Antweiler, chair in international trade policy at the University of British Columbia, attributes the general rise in smartphone prices to the global microchip shortage driven by the AI industry’s growth and data center expansion, leading to escalated manufacturing costs. He expresses surprise at Apple’s decision to increase prices specifically for Canadian consumers but notes that such price variations are not uncommon for U.S. companies due to price discrimination practices.
Pre-orders for the iPhone Duo will commence on Oct. 17, with the official release scheduled for Oct. 23, following Apple CEO John Ternus’s unveiling of the device, marking a significant change in the company’s flagship product. CBC News has reached out to Apple for comment but has not yet received a response.