Canadians are accustomed to higher prices compared to their neighbors in the U.S., but the price difference for the latest iPhone has caught many off guard. Apple’s recently unveiled foldable phone, the iPhone Duo, is being sold in Canada for prices ranging from $2,999 to $4,799 before tax.
In the U.S., prices start at $1,999, equivalent to about $2,760 Canadian dollars, which means Canadians will need to pay nearly 10% more for the basic model. This disparity in pricing sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting that those willing to spend such amounts on a phone should undergo a financial literacy course.
According to University of Toronto economics professor Joseph Steinberg, the increased price likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo, who are less sensitive to price compared to American consumers, allowing Apple to increase profit margins.
Steinberg points out that while it is common for electronics and other products to be pricier in Canada, the exorbitant cost of this phone stands out the most. Some had speculated that Canada’s new retaliatory tariffs on U.S. products might have influenced the iPhone’s pricing, but experts have clarified that this is not the case. Even though smartphones are among the U.S. products subjected to tariffs, Canada does not import iPhones from the U.S. significantly, as the devices are manufactured in China.
The ongoing global microchip shortage, driven by the AI boom and the proliferation of data centers, is contributing to the rise in smartphone prices. Werner Antweiler, chair in international trade policy at the University of British Columbia, mentions that virtually all electronics in Canada come from Asia and are made with components from around the world. He expresses surprise at Apple’s decision to increase prices more for Canadian consumers but notes that price discrimination is not uncommon, especially for U.S. companies.
Antweiler highlights that price discrepancies of about 10 to 15% are typical due to the Canadian market’s willingness to pay more, considering the country’s smaller market size compared to the U.S. Apple has not responded to CBC News’ request for comment on the matter.
The unveiling of the iPhone Duo was led by Apple CEO John Ternus in his first major event since assuming the leadership role. Pre-orders for the Duo will commence on October 17, and the phone will be available for purchase on October 23.
