Canadians are accustomed to encountering higher price tags compared to their American counterparts, but the cost disparity for the newest iPhone model has raised eyebrows. Apple’s latest foldable device, the iPhone Duo, is being sold in Canada for prices ranging from $2,999 to $4,799 before taxes. In the U.S., prices start at $1,999, equivalent to about $2,760 in Canadian dollars, meaning Canadian consumers will have to shell out nearly 10% more for the base model.
The price shock elicited mockery and criticism on a Canadian Reddit forum, with users suggesting that spending such a hefty sum on a phone should require a financial literacy course. Some even joked that the cost was comparable to buying a car.
University of Toronto economics professor Joseph Steinberg pointed out that the higher pricing in Canada likely reflects Apple’s acknowledgment that a segment of the Canadian market willing to purchase a “super-premium product” like the Duo is less price-sensitive than American consumers. He emphasized that while it’s common for electronics and other goods to be pricier in Canada, the iPhone Duo’s exceptionally steep price tag stands out.
Contrary to speculation that Canada’s retaliatory tariffs on U.S. products might have influenced the iPhone’s price hike, experts clarified that this was not the case. Despite smartphones being among the products subject to tariffs, the iPhone Duo is exempt because it is manufactured in China, not the U.S. This exemption is due to the phones being considered products originating in China rather than the U.S.
Additionally, the escalating trade tensions between Canada and the U.S. stemming from the tariffs have not impacted the iPhone Duo’s pricing. The global rise in smartphone prices, attributed to a microchip shortage caused by factors such as the AI boom and data center expansion, is also contributing to the increased costs. Price discrimination, a common practice among U.S. companies, is noted by experts, with Canadian consumers often paying a premium due to the country’s smaller market size.
Apple has not responded to CBC News’ request for comment. 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 device will begin on Oct. 17, with availability slated for Oct. 23.
