Canadians are accustomed to facing higher prices compared to their American counterparts, but the price 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., prices start at $1,999, equivalent to $2,760 in Canadian dollars, making the cheapest version almost 10 percent more expensive for Canadian consumers.
The steep prices sparked criticism and jests on a Canadian Reddit forum, with users commenting that spending such amounts on a phone should come with a financial literacy requirement. Some even joked that one used to be able to buy a car for the price of the iPhone Duo.
University of Toronto economics professor Joseph Steinberg suggests that the price hike indicates Apple’s acknowledgment of a segment of the Canadian population willing to purchase a “super-premium product” like the Duo at a higher price compared to American consumers. He notes that while it is common for electronics and other goods to be pricier in Canada, the exorbitant cost of the iPhone Duo stands out.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. The tariffs do not apply as the phones are manufactured in China, not the U.S. and are not imported in significant quantities from the U.S. Additionally, the global rise in smartphone prices is attributed to the microchip shortage caused by the AI boom and data center expansion, leading to increased manufacturing costs globally.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explains that most electronics in Canada originate from Asia with components sourced worldwide. He expresses surprise at Apple’s specific price increase for Canadian consumers but highlights that price discrimination of 10 to 15 percent is not uncommon for U.S. companies due to the Canadian market’s willingness to pay more.
Apple has not responded to CBC News’ request for comment. CEO John Ternus presented the iPhone Duo at the unveiling event, marking a significant change to the company’s flagship product in his first leadership role event. Pre-orders for the Duo will commence on Oct. 17, with the phone available for purchase on Oct. 23.