Canadians are accustomed to facing higher prices compared to their American counterparts, but the price discrepancy for Apple’s newest foldable phone, the iPhone Duo, has raised eyebrows. In Canada, the iPhone Duo is priced between $2,999 and $4,799 before taxes, while in the U.S., prices start at $1,999, equivalent to $2,760 in Canadian dollars. This means Canadians will pay nearly 10% more for the base model.
The steep pricing elicited criticism and humor on a Canadian Reddit forum, with some users suggesting that spending such a hefty amount on a phone warrants a financial literacy class. Others pointed out that the cost was comparable to buying a car.
University of Toronto economics professor Joseph Steinberg suggests that the higher price point in Canada reflects Apple’s acknowledgment that a subset of the Canadian market willing to purchase a “super-premium product” like the Duo is less sensitive to price compared to American consumers. He notes that while it is common for electronics to be pricier in Canada, the exorbitant cost of the iPhone Duo makes it particularly notable.
Contrary to speculation, experts assert that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. Despite smartphones being among the products subject to tariffs, Canada does not import iPhones in significant quantities from the U.S. The tariffs do not apply to the Duo as the phones are manufactured in China, making them exempt from U.S. tariffs.
According to Werner Antweiler, an international trade policy expert at the University of British Columbia, the global surge in smartphone prices is attributed to a microchip shortage driven by the AI boom and data center expansion. While surprised by Apple’s decision to raise prices for Canadian consumers, Antweiler explains that price discrepancies are common in the industry, with Canadian consumers generally paying more 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, marking a significant change to the company’s flagship product. Pre-orders for the Duo will commence on Oct. 17, with the phone hitting the market on Oct. 23.