Canadians are accustomed to encountering higher prices compared to their U.S. counterparts, but the pricing discrepancy for the latest iPhone has raised eyebrows. The iPhone Duo, Apple’s recently unveiled foldable phone, is being sold in Canada at prices ranging between $2,999 and $4,799 before taxes. In contrast, prices in the U.S. start at $1,999, which translates to about $2,760 in Canadian dollars, resulting in Canadians having to pay nearly 10% more for the base model.
The steep prices prompted ridicule 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 user humorously remarked that the price used to be equivalent 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 population willing to purchase a “super-premium product” like the Duo, which may be less sensitive to price compared to American consumers, allowing Apple to slightly increase its profit margin.
Steinberg further points out that while it is common for electronics and other products to be pricier in Canada, the exorbitant cost of the iPhone Duo stands out. Speculations about Canada’s retaliatory tariffs affecting iPhone prices were dismissed by experts, noting that the tariffs do not apply to the Duo as the phones are manufactured in China, not the U.S., and are not significantly imported from the U.S. to Canada.
The global shortage of microchips is driving up smartphone prices worldwide, with Werner Antweiler, chair in international trade policy at the University of British Columbia, attributing the rise in prices to the high demand caused by the AI industry and data center expansions. Antweiler expressed surprise at Apple’s decision to increase prices specifically for Canadian consumers, though he acknowledged that price discrimination is not uncommon among U.S. companies targeting the Canadian market.
Pre-orders for the iPhone Duo will commence on Oct. 17, with the phone set to be available on Oct. 23. Apple CEO John Ternus led the unveiling of the device, marking a significant shift in the company’s flagship product under his leadership. CBC News reached out to Apple for comment but has not received a response.