Canadians are accustomed to encountering higher prices compared to Americans, but the cost disparity for the newest iPhone has raised eyebrows. Apple’s latest foldable phone, the iPhone Duo, was unveiled on Wednesday with prices ranging from $2,999 to $4,799 in Canada before taxes. In the U.S., prices start at $1,999, equivalent to about $2,760 in Canadian dollars, indicating that Canadians will have to pay nearly 10% more for the base model.
The significant price difference sparked ridicule and jests on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo a financial literacy course. Another commenter humorously noted that the phone’s cost was comparable to buying a car.
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, suggesting they are less sensitive to price changes compared to American consumers, allowing Apple to increase profit margins.
Steinberg highlighted that while it is common for products to be pricier in Canada, the exorbitant cost of the iPhone Duo made it particularly noticeable. Contrary to speculation, experts clarified that Canada’s retaliatory tariffs on U.S. goods do not affect the iPhone’s pricing as the devices are manufactured in China, not the U.S., and are not significantly imported from the U.S. to Canada.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the surge in smartphone prices globally is due to a microchip shortage caused by the AI industry’s growth and the proliferation of data centers, leading to heightened manufacturing costs. He expressed surprise at Apple’s decision to raise prices more for Canadian consumers, attributing such price differentials to market conditions and the smaller size of Canada’s market compared to the U.S.
Apple has not yet responded to CBC News’ request for comment. CEO John Ternus introduced the iPhone Duo during the event, marking a significant shift in the company’s flagship product. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.