Canadians are accustomed to encountering higher prices compared to their American counterparts, but the price 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 taxes. In contrast, prices in the U.S. start at $1,999, equivalent to around $2,760 in Canadian dollars, resulting in Canadians having to shell out nearly 10% more for the base model.
The steep price tag elicited mockery and criticism on a Canadian Reddit forum, with one user suggesting that individuals considering such an expensive phone should undergo financial literacy training. Another user humorously pointed out that the amount could have previously bought a car.
According to University of Toronto economics professor Joseph Steinberg, the price increase indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo at a higher price. Steinberg explained that Canadian consumers may be less price-sensitive than their American counterparts, allowing Apple to increase profit margins.
While some speculated that Canada’s retaliatory tariffs on U.S. products might have influenced the iPhone prices, experts clarified that this was not the case. Despite the imposition of tariffs on smartphones among other products, Canada does not significantly import iPhones from the U.S. The iPhone Duo, manufactured in China, is not subject to Canadian tariffs targeting U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, highlighted that the escalating prices of smartphones globally are attributed to the ongoing microchip shortage driven by the AI industry’s expansion and data center proliferation. He noted that Apple’s decision to raise prices for Canadian consumers specifically, though not uncommon for U.S. companies, came as a surprise.
Antweiler emphasized that price discrimination, with Canadian consumers typically paying 10 to 15% more than their American counterparts, is often observed due to Canada’s smaller market size. This pricing strategy, according to Antweiler, is common among U.S. companies.
Apple has not responded to CBC News’ request for comments. The unveiling of the iPhone Duo was led by Apple CEO John Ternus on Wednesday, 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 Oct. 17, with the phone available for purchase on Oct. 23.
