Hardware Giants Blame Brexit for Price Increases

Hardware Giants Blame Brexit for Price Increases

In the wake of Britain’s vote to leave the EU, Microsoft is raising prices significantly. “A spokeswoman for Microsoft confirmed it has raised some consumer prices, telling TechCrunch: In response to a recent review we are adjusting the British pound prices of some of our hardware and consumer software in order to align to market dynamics.” (TechCrunch)

Microsoft has increased UK prices for their Surface Book, Surface Pro 4, and some consumer software. The cost of the Surface Book now starts at £1,449, which is up 11.5% from the previous price of £1,299. January saw price increases for any organizations paying sterling for its software and services (up to 22% increase). However, this price hike only affects purchases by individuals or organizations without volume licensing contracts.

“Microsoft is by no means the only electronics maker inflating consumer prices in the wake of the Brexit vote. Yesterday (Feb 14) audio kit maker Sonos bumped up its prices by up to 25 per cent, while Apple raised Mac prices by up to 25 per cent in October. It also increased the price of iOS apps by the same percentage in January.” (Tech Crunch)

“Its other concern is whether it will face cross-border data-transfer problems post-Brexit. However, Microsoft is hopeful that Brexit will open the door to bringing in more skilled labour from outside Europe.” (ZDNet)

Software Giants Push Forward

While the price of many electronics may be increasing due to Brexit, multiple software companies plan to move forward with development anyway. ”Amazon and Expedia are two of many tech firms challenging the fear that after Brexit the UK will be less attractive to foreign investment.” (Sputnik News) In addition, Google and Facebook have confirmed their UK expansion with offices in London. This will mean new job opportunities with those companies throughout the UK.

Sources: ZDNet, Tech Crunch, Sputnik News