Canadians are accustomed to paying higher prices compared to their counterparts in the U.S., but the price discrepancy for the latest iPhone model has raised eyebrows. Apple’s new foldable phone, the iPhone Duo, was unveiled on Wednesday with prices starting from $2,999 to $4,799 in Canada, before taxes.
In the U.S., the starting price is $1,999, which translates to approximately $2,760 in Canadian dollars. This means Canadian consumers will have to shell out nearly 10 percent more for the cheapest version of the phone. The revelation of these prices sparked criticism and humor on a Canadian Reddit forum, with one user suggesting that individuals spending that much on a phone should undergo a financial literacy course.
According to University of Toronto economics professor Joseph Steinberg, the price increase likely indicates that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo, even if it comes at a higher cost than in the U.S. Steinberg mentioned that higher prices for electronics and other products in Canada are not uncommon, but the exorbitant cost of the iPhone Duo makes it particularly noteworthy.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. While smartphones are among the products tariffed by Canada, the devices are not imported in significant quantities from the U.S. Additionally, since the phones are manufactured in China, they are considered products originating from China and not subject to U.S. tariffs.
The surge in smartphone prices globally is attributed to a microchip shortage caused by the AI boom and the rapid expansion of data centers. This has led to increased manufacturing costs, affecting prices of electronic devices. Werner Antweiler, an expert in international trade policy at the University of British Columbia, noted that price discrimination by U.S. companies, including Apple, is not uncommon, with Canadian consumers typically paying a premium due to the smaller market size.
Apple has not responded to CBC News’ request for comment regarding the price increase for the iPhone Duo. The unveiling of the iPhone Duo was led by Apple CEO John Ternus, marking a significant shift in the company’s flagship product. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.
