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 priced between $2,999 and $4,799 in Canada, excluding taxes. In the U.S., prices start at $1,999, equivalent to about $2,760 in Canadian dollars, resulting in nearly a 10% premium for the base model in Canada.
The substantial price hike sparked ridicule and jests on a Canadian Reddit forum, with one user suggesting individuals buying such expensive phones should undergo financial literacy training. Another commenter remarked that one could have bought a car for the same amount previously.
According to University of Toronto economics professor Joseph Steinberg, the price increase likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo, implying they are less price-sensitive compared to American consumers, allowing Apple to raise profit margins.
Despite speculations that Canada’s retaliatory tariffs on U.S. products could impact iPhone prices, experts confirm this is not the case. While smartphones are among the U.S. products subject to a 50% tariff, these devices are not significantly imported from the U.S. to Canada. Moreover, the iPhone Duo is exempt from Canadian tariffs as it is manufactured in China, thereby not categorized as a U.S. product.
Werner Antweiler, chair in international trade policy at the University of British Columbia, attributes the general rise in smartphone prices to the global microchip shortage, driven by the AI industry’s expansion and the proliferation of data centers, leading to heightened manufacturing costs. Antweiler expresses surprise at Apple’s decision to raise prices specifically for Canadian consumers but notes that U.S. companies often engage in price discrimination practices.
Apple has not responded to CBC News’ request for comment. The unveiling of the iPhone Duo was led by Apple CEO John Ternus, marking a significant shift in the company’s flagship product during his inaugural event as CEO. Pre-orders for the Duo commence on October 17, with the phone hitting the market on October 23.
