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Microsoft hikes prices by 15% in the UK to offset post-Brexit pound

news
17 February 2017

Computer giant Microsoft has become the latest tech firm to raise the price of gadgets by over 15 per cent after Brexit.

With the move, a higher end laptop, could become costlier by 400 with Microsoft becoming the latest  foreign firm to blame the fall in the value of the pound to raise prices.

The steep rise comes after Apple and speaker maker Sonos, made similar moves which saw the cost of computers, speakers and apps increase by as much as 25 per cent.

According Microsoft, the fall in the pound following the EU referendum had necessitated adjusting the UK pound prices of its hardware and software.

Sterling was down 16 per cent against the dollar since June last year, which gave a big boost to exports due to UK goods becoming cheaper abroad.

However, it also meant Microsoft, which reported in dollars was making less money selling the same computer in the UK than it did in the US.

Microsoft and Apple had been criticised for passing this increase, which took effect 15 February, on to consumers.

A spokesman for Microsoft said, "These changes only affect products and services purchased by individuals, or organisations without volume licensing contracts.

"For indirect sales where our products and services are sold through partners, final prices will continue to be determined by them."

The price increase comes only months after Microsoft announced it would raise the cost of software services for businesses in the UK by as much as 22 per cent due to currency fluctuations.

A number of companies have hiked prices in a bid to compensate for the drop in the pound, which has been trading 16 per cent lower against the US dollar and over 10 per cent versus the euro since the Brexit vote.





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