Canadians often face higher prices compared to Americans, but the cost difference for the latest iPhone has raised eyebrows. Apple’s new 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, equivalent to about $2,760 in Canadian dollars, resulting in Canadians paying nearly 10% more for the base model.
The steep prices sparked criticism and humor on a Canadian Reddit forum, with one user suggesting that anyone spending that much on a phone should take a financial literacy course. Another user pointed out that one could have bought a car for that amount in the past.
According to University of Toronto economics professor Joseph Steinberg, the higher price in Canada indicates that Apple identified a segment of the Canadian market willing to pay more for a “super-premium product” like the Duo. He explained that Canadian consumers of such products are less sensitive to price changes compared to their American counterparts, allowing Apple to increase margins.
Steinberg noted that while it is common for electronics and other goods to be pricier in Canada, the exceptionally high price of the iPhone Duo made it stand out. He clarified that the new retaliatory tariffs imposed by Canada on U.S. products have not affected the iPhone Duo’s pricing, as the phones are manufactured in China, not the U.S.
Werner Antweiler, chair in international trade policy at the University of British Columbia, attributed the general rise in smartphone prices to the global microchip shortage driven by the AI industry and data centers’ rapid expansion. He expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers but acknowledged that price discrimination by U.S. companies is not uncommon.
Apple has been contacted for comment by CBC News but has not responded. The unveiling of the iPhone Duo, led by Apple CEO John Ternus, introduced a significant change to the company’s flagship product. Pre-orders for the Duo will commence on Oct. 17, with the phone becoming available on Oct. 23.
