Canadians are accustomed to encountering higher price tags compared to their American counterparts, but the price disparity for Apple’s latest foldable phone, the iPhone Duo, has raised eyebrows. In Canada, the iPhone Duo is priced between $2,999 and $4,799 before taxes, while in the U.S., prices start at $1,999, which is equivalent to $2,760 Canadian dollars. This means Canadian consumers will have to shell out nearly 10% more for the base model.
The steep prices sparked ridicule and banter on a Canadian Reddit forum, with one user suggesting that anyone spending that much on a phone should undergo a financial literacy course. Another user pointed out that in the past, the amount could have bought a car.
According to University of Toronto economics professor Joseph Steinberg, the higher price in Canada may indicate that Apple identified a segment of the Canadian population willing to purchase a “super-premium product” like the Duo, who are less sensitive to price compared to American consumers. Steinberg noted that while electronic devices and other products are typically pricier in Canada, the exorbitant cost of the iPhone Duo makes it particularly noticeable.
Contrary to speculation, experts have clarified that Canada’s new retaliatory tariffs on U.S. goods do not impact the iPhone Duo’s pricing. Although smartphones are among the products subject to a 50% tariff, as listed by Canada, Steinberg explained that since the phones are manufactured in China and not imported significantly from the U.S., they are not affected by these tariffs.
The escalating prices of smartphones, including the iPhone Duo, are attributed to the global microchip shortage, driven by the AI industry’s growth and the proliferation of data centers. Werner Antweiler, chair in international trade policy at the University of British Columbia, highlighted that while price discrimination by U.S. companies is not uncommon, the Canadian market often pays more due to its smaller size.
Apple has not responded to CBC News’ request for comment. The iPhone Duo was unveiled by Apple CEO John Ternus, marking a significant change to the company’s flagship product. Pre-orders for the Duo will commence on Oct. 17, with the phone hitting the shelves on Oct. 23.