Canadians are accustomed to encountering higher price tags than their counterparts in the U.S., but the cost disparity for the latest iPhone has stirred attention. 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 USD, equivalent to approximately $2,760 CAD, resulting in Canadians having to shell out nearly 10% more for the base model.
The steep pricing prompted mockery and jests on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should undergo a financial literacy course. Another user humorously remarked, “You used to be able to buy a car for that amount.”
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, which is “less sensitive to price” compared to American consumers, allowing Apple to slightly boost profit margins.
Steinberg pointed out that while it is common for electronics and other products to be pricier in Canada, the exorbitant cost of the iPhone Duo makes it particularly noteworthy. He emphasized that the new retaliatory tariffs imposed by Canada on U.S. products are not a contributing factor to the elevated iPhone prices.
Werner Antweiler, chair in international trade policy at the University of British Columbia, highlighted that the surge in smartphone prices globally is due to the ongoing microchip shortage driven by the AI industry’s growth and the rapid expansion of data centers. This heightened demand is inflating manufacturing costs, impacting prices across the electronics market.
Antweiler expressed surprise at Apple’s decision to raise prices more significantly for Canadian consumers, though he acknowledged that such price discrepancies are not uncommon among U.S. companies due to market size variations. He mentioned that price discrimination, with a 10 to 15% markup for the Canadian market, is standard practice.
Apple, led by CEO John Ternus, presented 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 hitting the shelves on October 23.
