Canadians are accustomed to encountering higher price tags compared to Americans, but the pricing disparity for the latest iPhone has raised eyebrows. Apple’s newly unveiled foldable phone, the iPhone Duo, is being sold in Canada at prices ranging from $2,999 to $4,799 before taxes. Meanwhile, in the U.S., prices start at $1,999 USD, equivalent to $2,760 CAD, making Canadians pay nearly 10% more for the base model.
This pricing shock elicited ridicule and jests on a Canadian Reddit forum, with one user suggesting that individuals willing to spend such amounts on a phone should undergo financial literacy training. Another user humorously commented, “You used to be able to buy a car for that amount.”
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, suggesting they are less price-sensitive compared to American consumers. Steinberg emphasized that while it is common for electronics and other goods to be pricier in Canada, the exorbitant cost of this particular phone is what sets it apart.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not influence the iPhone Duo’s pricing. Despite smartphones being among the U.S. goods tariffed at 50%, Steinberg explained that since the iPhones are manufactured in China, they are not subject to Canada’s tariffs on American products due to their origin.
Werner Antweiler, the chair in international trade policy at the University of British Columbia, highlighted that the rise in smartphone prices globally is primarily due to the microchip shortage caused by the AI boom and the proliferation of data centers. He expressed surprise at Apple’s decision to raise prices more for Canadian consumers specifically, noting that U.S. companies often engage in price discrimination practices.
Antweiler emphasized that price discrimination, typically in the range of 10 to 15 percent, is common in Canada due to its smaller market size compared to the U.S. Apple has not responded to CBC News’ request for comments regarding the price increase of the iPhone Duo.
Apple’s CEO John Ternus introduced the iPhone Duo during a significant event marking a substantial change to the company’s flagship product. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.