Canadians are accustomed to encountering higher prices compared to Americans, but the price disparity for the latest iPhone has sparked surprise. Apple’s new foldable phone, the iPhone Duo, is being sold in Canada for prices ranging from $2,999 to $4,799, excluding tax. 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 base model.
The steep prices prompted ridicule and jests on a Canadian Reddit forum, with one user suggesting that individuals spending such amounts on a phone should take a financial literacy class. Another user remarked, “You could have bought a car for that price in the past.”
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 buy a “super-premium product” like the Duo, which is “less sensitive to price” compared to American consumers. Steinberg highlighted that it is not uncommon for electronics and other products to be pricier in Canada, but the exorbitant cost of this phone makes it particularly noteworthy.
Contrary to speculation, experts informed CBC News that Canada’s new retaliatory tariffs on U.S. products do not impact the iPhone Duo’s pricing. While smartphones are among the U.S. products subject to tariffs, Canada does not significantly import these devices from the U.S. Additionally, the iPhone Duo is manufactured in China, making it exempt from Canada’s tariffs on U.S. products.
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 caused by the AI industry’s growth and the expanding data center network. He expressed surprise at Apple’s decision to raise prices specifically for Canadian consumers but noted that price discrimination is common, as Canadian markets typically tolerate a 10 to 15 percent markup due to the country’s smaller market size compared to the U.S.
CBC News reached out to Apple for comment without receiving a response. Apple CEO John Ternus introduced the iPhone Duo during an event, marking a significant change to the company’s flagship product in his first leadership role event. Pre-orders for the Duo commence on Oct. 17, with availability set for Oct. 23.