Canadians are accustomed to encountering higher price tags compared to their American counterparts, 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 for prices ranging from $2,999 to $4,799 before tax. In contrast, prices in the U.S. start at $1,999, equivalent to about $2,760 in Canadian dollars, resulting in Canadians having to pay almost 10 percent more for the base model.
This significant price difference led to ridicule and jests on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo a financial literacy course. Another user humorously remarked that one used to be able to purchase a car for the same price.
According to University of Toronto economics professor Joseph Steinberg, the price increase likely indicates that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo, who are less sensitive to price compared to American consumers. Steinberg highlighted that while it is common for electronics and other products to be pricier in Canada, the exorbitant cost of this particular phone makes it stand out.
Contrary to speculation, experts have clarified that Canada’s recent retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. Despite smartphones being on the list of U.S. products subject to tariffs, Steinberg explained that Canada does not significantly import these devices from the U.S. Moreover, as the phones are manufactured in China, they are treated as products originating from China rather than the U.S., exempting them from Canadian tariffs.
Werner Antweiler, chair in international trade policy at the University of British Columbia, attributed the general rise in smartphone prices to the global microchip shortage caused by the AI boom and the proliferation of data centers, driving up manufacturing costs. Antweiler expressed surprise at Apple’s decision to raise prices more for Canadian consumers, though he noted that price discrimination is not uncommon, especially by U.S. companies. He emphasized that Canadian markets typically pay 10 to 15 percent more due to being a smaller market compared to the U.S.
CBC News reached out to Apple for comment but has not received a response. Apple CEO John Ternus led the unveiling of the iPhone Duo, marking a significant change to the company’s flagship product in his first event since assuming the leadership role. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23.
