Canadians are accustomed to encountering higher prices compared to their U.S. counterparts, but the price disparity for the latest iPhone model has raised eyebrows. Apple’s newest 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 $2,760 Canadian dollars, making Canadians pay nearly 10% more for the base model.
The steep pricing elicited mockery and criticism on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo financial literacy training. Another user humorously noted that the cost could have previously bought a car.
Economics professor Joseph Steinberg from the University of Toronto explained that the price increase likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo at a higher price than American consumers. Steinberg mentioned that while it is common for products to be pricier in Canada, the exorbitant cost of this phone stands out.
Contrary to speculation, experts clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. Despite smartphones being subject to tariffs, since the phones are manufactured in China and not imported significantly from the U.S., they are not affected by Canadian tariffs.
Werner Antweiler, an international trade policy expert at the University of British Columbia, attributed the general increase in smartphone prices to the global microchip shortage driven by the AI industry’s growth and data center expansion. He expressed surprise at Apple’s specific price hike for Canadian consumers but noted that such differential pricing is not uncommon for U.S. companies targeting the Canadian market.
CBC News reached out to Apple for a response but has not received any comments. Apple’s CEO, John Ternus, led the unveiling of the iPhone Duo, marking a significant change in the company’s flagship product during his first event as CEO. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.