Canadians are accustomed to encountering higher price tags compared to their counterparts in the U.S., but the pricing disparity for the latest iPhone has caught many by surprise. Apple’s new foldable phone, the iPhone Duo, was unveiled on Wednesday with prices ranging from $2,999 to $4,799 in Canada before taxes. In contrast, prices in the U.S. start at $1,999, equivalent to about $2,760 Canadian dollars, resulting in Canadians having to shell out almost 10 percent more for the base model.
The steep prices 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 financial literacy training. Another user humorously remarked how the cost of the phone could have bought a car in the past.
According to University of Toronto economics professor Joseph Steinberg, the price hike likely indicates that Apple identified a segment of Canadian consumers willing to invest in a “super-premium product” like the Duo, who are less sensitive to price changes compared to their American counterparts, allowing Apple to increase profit margins.
While it’s common for electronics and other goods to be pricier in Canada, the exorbitant cost of the iPhone Duo stands out. Speculations about Canada’s retaliatory tariffs impacting iPhone prices were dismissed by experts, as the phones are manufactured in China and not subject to the tariffs on U.S. products.
The global microchip shortage, driven by the AI industry’s growth and data center expansion, has led to a surge in manufacturing costs, contributing to rising smartphone prices. Werner Antweiler from the University of British Columbia notes that while price discrimination by U.S. companies targeting Canadian consumers is not uncommon, Apple’s specific price increase for Canadian buyers is surprising.
Pre-orders for the iPhone Duo will begin on October 17, with the phone becoming available on October 23. Apple CEO John Ternus led the unveiling of the device, marking a significant shift in the company’s flagship product under his leadership. CBC News reached out to Apple for comment without receiving a response.