Canadians are accustomed to encountering higher price tags compared to their U.S. counterparts, but the cost 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. Conversely, in the U.S., prices start at $1,999, equivalent to approximately $2,760 in Canadian dollars, resulting in Canadians having to shell out nearly 10 percent more for the base model.
The revelation of these prices sparked mockery and banter on a Canadian Reddit forum, with one user suggesting that individuals splurging on such an expensive phone should undergo a financial literacy course. Another user humorously remarked that one could previously purchase a car for the same amount.
University of Toronto economics professor Joseph Steinberg believes that the price increase indicates Apple’s acknowledgment of a segment of the Canadian population willing to buy a “super-premium product” like the Duo without being overly sensitive to the price, unlike American consumers. He highlighted that it is not uncommon for electronics and other products to be pricier in Canada, but the exorbitant cost of this phone makes it particularly notable.
Contrary to speculation that Canada’s new retaliatory tariffs on U.S. products might have influenced the iPhone prices, experts clarified that tariffs are not a contributing factor in this instance. While smartphones are among the products tariffed at 50 percent, Steinberg mentioned that Canada does not significantly import these devices from the U.S. Moreover, the iPhone Duo is exempt from Canada’s tariffs as it is manufactured in China, hence not considered a U.S.-origin product.
According to Werner Antweiler, chair in international trade policy at the University of British Columbia, the escalating prices of smartphones globally can be attributed to the ongoing microchip shortage, driven by the surge in artificial intelligence and data center proliferation, leading to heightened manufacturing costs. Antweiler expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers, although he noted that such price differentials, typically ranging from 10 to 15 percent, are not uncommon due to market dynamics and Canada’s smaller consumer base.
Apple has been contacted for comment by CBC News but has not responded. The unveiling of the iPhone Duo was led by Apple CEO John Ternus, marking a significant shift in the company’s flagship product during his first event since assuming the leadership role. Pre-orders for the Duo will commence on October 17, with the phone slated for availability on October 23.