Canadians are accustomed to higher price tags compared to Americans, but the cost disparity for the latest iPhone model 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, pre-tax. In the U.S., the starting price is $1,999, equivalent to $2,760 Canadian dollars, resulting in Canadians paying nearly 10% more for the base model.
The steep prices sparked criticism and humor on a Canadian Reddit forum, with users suggesting that spending such amounts on a phone should require financial literacy classes. Some remarked on the fact that one could previously purchase a car for the same price.
Economics professor Joseph Steinberg from the University of Toronto mentioned that the higher price in Canada indicates that Apple identified a segment of the Canadian population willing to buy a “super-premium product” like the Duo, implying they are less sensitive to price hikes compared to American consumers. He added that it is not uncommon for electronics and other products to have higher prices in Canada, but the exorbitant cost of this phone makes it particularly noteworthy.
Contrary to speculation, experts clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. While smartphones are among the products subject to tariffs, since the phones are manufactured in China, not the U.S., they are not affected by the tariffs. The recent tariffs between Canada and the U.S. do not apply to the iPhone Duo due to its origin.
Werner Antweiler, an international trade policy chair at the University of British Columbia, explained that the global microchip shortage, driven by high demand related to artificial intelligence and data centers, is causing a general increase in smartphone prices. He expressed surprise at Apple’s decision to raise prices more for Canadian consumers specifically, though noting that U.S. companies often adjust prices based on market dynamics. Antweiler highlighted that price differences between the U.S. and Canada are common due to market size disparities.
Apple has not responded to CBC News’ request for comment. The iPhone Duo was unveiled by Apple CEO John Ternus in his first leadership event, marking a significant shift in the company’s flagship product. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.