Canadians are accustomed to encountering higher price tags compared to their U.S. counterparts, but the cost disparity for the latest iPhone has raised eyebrows. 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 contrast, prices in the U.S. start at $1,999, equivalent to approximately $2,760 in Canadian dollars, resulting in Canadians paying nearly 10% more for the base model.
The significant price difference prompted mockery and jests on a Canadian Reddit forum, with one user suggesting that individuals willing to spend such amounts on a phone should undergo a financial literacy course. Another commenter humorously pointed out that one could have previously purchased a car for the same price.
University of Toronto economics professor Joseph Steinberg believes that the price increase indicates Apple’s recognition of a specific segment of the Canadian population willing to invest in a “super-premium product” like the Duo, implying they are less sensitive to price changes compared to their American counterparts, allowing Apple to slightly raise profit margins.
Steinberg 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 prominently. The professor refutes claims that Canada’s new retaliatory tariffs on U.S. products could be driving the higher iPhone prices, clarifying that the devices are not imported from the U.S. in significant quantities and are manufactured in China, thus exempt from the tariffs.
The ongoing global microchip shortage, triggered by the AI boom and expanding data centers, is cited by Werner Antweiler, Chair in International Trade Policy at the University of British Columbia, as a reason for the general increase in smartphone prices. Antweiler expresses surprise at Apple’s decision to elevate prices specifically for Canadian consumers, attributing it to common price discrimination practices by U.S. companies targeting smaller markets like Canada.
Apple has not responded to CBC News’ request for comment regarding the price hike. The unveiling of the iPhone Duo, led by Apple CEO John Ternus, marks a significant shift in the flagship product and the company’s first major event under his leadership. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.