Canadians are accustomed to encountering higher price tags compared to their American counterparts, but the cost disparity for the latest iPhone has caught many by surprise. 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 the U.S., prices start at $1,999, which converts to $2,760 in Canadian dollars, resulting in Canadians having to pay nearly 10 percent more for the base model.
The substantial price difference sparked criticism and humor on a Canadian Reddit forum, with users expressing disbelief at the high cost and suggesting that individuals purchasing such an expensive phone should undergo financial literacy training. An economics professor at the University of Toronto, Joseph Steinberg, mentioned that the higher price in Canada indicates that Apple identified a segment of the Canadian market willing to buy a “super-premium product” like the Duo at a higher price, compared to American consumers. He added that it is not uncommon for electronics and other products to be pricier in Canada.
Contrary to speculation that Canada’s new retaliatory tariffs on U.S. products could be driving up iPhone prices, experts clarified that this is not the case. While smartphones are among the U.S. products facing a 50 percent tariff, Canada does not import significant quantities of these devices from the U.S. Additionally, the iPhone Duo is manufactured in China, exempting it from Canada’s tariffs on U.S. goods.
Werner Antweiler, chair in international trade policy at the University of British Columbia, highlighted the global microchip shortage as a key factor behind the rising prices of smartphones. The shortage, influenced by the AI industry’s growth and data center expansion, has led to increased manufacturing costs. Despite the price hike for Canadian consumers, Antweiler noted that price discrimination by U.S. companies is not uncommon, with Canadian markets typically willing to pay slightly higher prices due to the country’s smaller market size.
Apple, led by CEO John Ternus, introduced the iPhone Duo during a recent event, marking a significant shift in the company’s flagship product. Pre-orders for the Duo will commence on October 17, with the phone becoming available on October 23. Apple has been contacted for comment but has not responded yet.
