Apple products are way more expensive in Canada then the US

theKHMERboy

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May 12, 2013
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I understand that it’s different countries and all but the currency between the 2 countries are not much different. I been an apple user for quite some time. I guess you can say I’m a apple fanatic. Love most of their products and they all work well. The only thing is that being in Canada apple products can be pretty pricey. Especially compare to the US where it’s cheaper and they probably pay less tax if not none in some states. In Canada the cost of apple products are way more expensive on top of the tax we have? What I wonder is why are prices for the product way different in both countries?
 

EdwinG

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Mar 10, 2012
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There are many reasons why products, including Apple’s, are more expensive here, in Canada.

While I have no insights into Apple Canada, here are a couple of factors that can drive our pricing higher:

  • Salaries and benefits: Apple Canada has many employees, including retail, that you need to pay for… and even if it was at minimum wage, it still goes up by a couple of percentage points per year (about 14$/hour right now). Also, the employer is expected to pay half of EI and other benefits.
  • Taxes: Corporate taxes in Canada are higher than in the USA. The current rate is 15% at the national (federal) level, to which you need to add provincial taxes (around 11%). In the USA, that’s a 21% national and a smaller state tax (quick glance, around 6-7%).
  • Québec’s Law C-11 (aka Bill 101): All products and packaging must be available in Canadian French, including manuals. You need to pay for those translations.
  • Certification: All wireless products have to carry an Innovation, Science and Economic Development Canada licence to emit/receive wireless traffic.
  • Shipping: Canada is wide and not densely populated, so shipping costs for the small town in Northwest Territories are higher than Toronto or Montréal. Apple does not charge you for shipping costs, but they are included in the product’s price.
  • Exchange rate: You mentioned it. I want to add that Apple doesn’t usually review their pricing more than one or two times per year. They try to average the exchange rate they expect for the next period. There was a time where the price difference for a USA and Canadian iPhone was around 50$ (on number value).

So these are some factors involved. Are they all applicable? Maybe, but like I said, I have no insight into the company.
 
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wilber1

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May 13, 2013
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For those not living under a rock for the last year the US/Canada border has been closed for none essential travel .
 

bakron1

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Back in the day, I would buy stuff for my relieves stuff in the US and take it over to them in Canada. The Canadian folks also do a lot of their shopping at stores in the metro Detroit area which was great for the local business folks.

But, with the COVID situation, the border has been shut down which has hurt merchants on both sides of the border. I live in Florida now and even here they have felt the economics of the Canadian snowbird folks not being able to come here for the winter months.

Just hoping with the vaccines, things will improve and we will will get back to normal and start rebuilding both economies.

Being I also have many relatives in Canada, I know firsthand how both the US and Canada depend on each other. I just hope things will start improving more sooner then later.
 

Speedygi

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Mar 31, 2012
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Back in the day, I would buy stuff for my relieves stuff in the US and take it over to them in Canada. The Canadian folks also do a lot of their shopping at stores in the metro Detroit area which was great for the local business folks.

But, with the COVID situation, the border has been shut down which has hurt merchants on both sides of the border. I live in Florida now and even here they have felt the economics of the Canadian snowbird folks not being able to come here for the winter months.

Just hoping with the vaccines, things will improve and we will will get back to normal and start rebuilding both economies.

Being I also have many relatives in Canada, I know firsthand how both the US and Canada depend on each other. I just hope things will start improving more sooner then later.

I hope so too...
 

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