Canadians are accustomed to encountering higher price tags compared to their U.S. counterparts, but the cost disparity for the latest iPhone release has raised eyebrows. Apple’s new 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 in Canadian currency, meaning Canadian consumers will be paying nearly 10% more for the base model.
The steep pricing elicited criticism and humor on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should consider taking a financial literacy class. Another comment pointed out that the cost of the iPhone Duo could have previously bought a car.
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, showing less sensitivity to pricing compared to American consumers. He remarked that while it is common for electronics and other items to be pricier in Canada, the exorbitant cost of the phone stands out prominently.
Contrary to speculation about Canada’s retaliatory tariffs affecting iPhone prices, experts clarified that this is not the case. Despite smartphones being among the U.S. products subjected to tariffs by Canada, the iPhone Duo is manufactured in China and is not imported significantly from the U.S. This exemption from tariffs is due to the phone’s origin in China, not the U.S.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the surge in smartphone prices globally is attributed to the ongoing microchip shortage, driven by the AI industry’s growth and the proliferation of data centers. He expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers but noted that such price differentials are not uncommon for U.S. companies targeting the Canadian market.
Pre-orders for the iPhone Duo will commence on Oct. 17, with the phone becoming available on Oct. 23, following its unveiling by Apple CEO John Ternus in his inaugural leadership event. CBC News attempted to reach out to Apple for comments but has not received a response yet.