Microsoft bumps up prices due to Brexit slump

Microsoft prices increase due to Brexit pound slump

Microsoft prices increase due to Brexit pound slump

The company is the latest to pass on the cost of the slump in the pound to UK customers in the wake of the EU referendum.

13:44, UK,
Thursday
16
February
2017


The Microsoft Surface Pro 4 is one of the products which has seen its price rise following Brexit
Image Caption:
The Microsoft Surface Pro 4 is one of the products which has seen its price rise following Brexit

Microsoft is increasing its prices in the UK by as much as 15% as a direct result of the slump in the value of the pound.

It is the latest company to announce increases linked to the Brexit referendum, which sent the value of sterling plunging.

The fall has particularly affected companies which import their goods into the UK, as the gap between how much it costs firms to manufacture products and the value of their sterling sale price has widened.

Less than a week ago, US speaker-maker Sonos said it was implementing hikes of up to 25%.


A new car compound near Queenborough, Kent

Video:
Car prices to rise after pound slump

As of today a 128GB Microsoft Surface Book will cost consumers £150 more – up to £1,449 from £1,299, and increase of 11.5%.

The 1TB i7 version of the Microsoft Surface Book is 15% more expensive, up by £400 to £3,049.

And the Surface Pro 4 is rising 7.3% from £2,199 to £2,159.

Microsoft previously announced it would be raising the price of its software services by up to 22%, and Apple revealed last autumn its computer and laptop prices had risen by around 20% thanks to the slide in the value of the pound.

Sterling slumped by almost 20% immediately following the Brexit vote in June, and although it has recovered slightly in the past six months its value remains around 16% below pre-referendum levels.

The weak pound is also making holidays abroad more expensive, and the car industry trade body is warning that vehicle prices are expected to start rising within weeks.

While the exchange rate makes the cost of UK goods and services more competitive to foreign buyers, British-based manufacturers are also being hit by higher import costs.

Source

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