Canadians are accustomed to paying higher prices compared to Americans, but the pricing gap for the latest iPhone has raised eyebrows. Apple’s new foldable phone, the iPhone Duo, was unveiled with prices ranging from $2,999 to $4,799 in Canada, before taxes. In the U.S., prices start at $1,999, equivalent to $2,760 in Canadian dollars, meaning Canadians will pay nearly 10 percent more for the cheapest model.
The price discrepancy sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting that anyone spending such a large amount on a phone should undergo financial literacy training. Another user quipped, “You used to be able to buy a car for that amount.”
According to University of Toronto economics professor Joseph Steinberg, the higher pricing likely indicates that Apple identified a segment of the Canadian market willing to purchase a “super-premium product” like the Duo, which suggests they are less sensitive to price compared to American consumers. Steinberg highlighted that it is not uncommon for electronics and other products to be priced higher in Canada, but the exceptionally high cost of this phone makes it stand out.
Despite speculation that Canada’s retaliatory tariffs on U.S. products could impact iPhone prices, experts clarified that this is not the case. While smartphones are among the U.S. products subject to tariffs, Canada does not significantly import iPhones from the U.S. The iPhone Duo is manufactured in China, so it is not affected by the tariffs on U.S. products.
Werner Antweiler, chair in international trade policy at the University of British Columbia, explained that the rise in smartphone prices globally is due to the microchip shortage caused by the AI boom and the proliferation of data centers. This surge in demand is driving up manufacturing costs. Antweiler expressed surprise at Apple’s decision to raise prices for Canadian consumers, but noted that price discrimination is common, with Canadian markets typically paying 10 to 15 percent more due to the country’s smaller market size.
Apple has not responded to CBC News’ request for comment. Apple CEO John Ternus introduced the iPhone Duo at the event, marking a significant change to the company’s flagship product. Pre-orders for the Duo will begin on Oct. 17, with the phone becoming available on Oct. 23.