Drop in Sterling exchange rates behind Surface PC price hikes
Brexit Blues: with the fall in Sterling’s value, the cost of IT equipment is set to rise instead of fall. Image by Jinning Li (via Shutterstock).
The Pound’s drop in exchange rates against the US Dollar is behind Microsoft’s price hikes on its Surface laptops. Their state-of-the-art laptops, using solid state drives as standard have risen in price by 15%. Over the space of a week, their Surface Book laptop has risen from £1,299 to £1,449.
Since the EU Membership Referendum, the impact of its result has seen a fall in Sterling rates. At present, it is close to parity with the US Dollar. Therefore, the cost of purchasing American goods is more expensive for Britons, compared with this time last year. Post-Brexit, American tech companies – namely Apple and Dell – have been quick to review their UK prices.
Earlier this week, Sonos has raised the UK price of its speakers by 25%. Microsoft, unlike its competitors, have deferred their hardware price rises till this month, though increased UK prices for its cloud computing services last Autumn.
Should Sterling continue to fall in value, the cost of computer systems will be prohibitive for home users in the United Kingdom. This could make non-Microsoft and non-Apple systems, such as the Raspberry PI a cheaper alternative. Perhaps the year of the Linux desktop could be 2017 in Boston, Lincolnshire, rather than Boston, Massachusetts.
Brexit Backlash: What the ‘Papers Have Said
The Daily Mail has been a favourable advocate of leaving the EU yet, under Edward Heath’s Government, endorsed Britain’s EEC membership in 1973. Of no surprise whatsoever, the Eurosceptic tabloid has claims that Microsoft have blamed Brexit for the price rises.
The Scotsman, Edinburgh’s quality daily newspaper states in its headline, “by up to 15% after Brexit vote”, referring to the aftershock of the Pound being the second worst performing currency of last year.