Canadians are accustomed to encountering higher price tags compared to their American counterparts, but the cost disparity for the latest iPhone release has raised some eyebrows. Apple’s innovative foldable phone, the iPhone Duo, was unveiled on Wednesday with prices ranging from $2,999 to $4,799 in Canada, excluding taxes.
In the United States, the starting price is $1,999, equivalent to around $2,760 CAD, indicating that Canadians will be paying nearly 10 percent more for the base model. This price discrepancy sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting that individuals splurging on such an expensive phone should undergo financial literacy training.
According to University of Toronto economics professor Joseph Steinberg, the price hike likely indicates Apple’s acknowledgment of a segment of the Canadian market willing to invest in a “super-premium product” like the Duo, suggesting they are less sensitive to price variations compared to American consumers. Steinberg notes that while electronics and other products often carry higher price tags in Canada, the exorbitant cost of the iPhone Duo has made it particularly noticeable.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products are not contributing to the increased iPhone prices. Steinberg explains that the tariffs do not apply to the iPhone Duo as the phones are manufactured in China, not the U.S., and are thus treated as products originating from China.
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 caused by the surge in artificial intelligence and data center expansion. While surprised by Apple’s specific price increase for Canadian consumers, Antweiler mentions that price discrimination, especially towards smaller markets like Canada, is a common strategy among U.S. companies.
CBC News reached out to Apple for a statement but has not received a response. The unveiling of the iPhone Duo was led by Apple CEO John Ternus on Wednesday, marking a significant shift in the company’s flagship product. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.
