Technology fans in the UK have seen the price of their favorite gadgets increase over the last few months due to Brexit, and now it looks like Microsoft is the latest company to increase their prices.
Microsoft has increased the price of the Microsoft Surface Book in the UK by £150 or around 11 percent, and this is apparently due to the current exchange rate of the UK pound due to Brexit.
Impact of Brexit on Technology Prices
The entry-level Microsoft Surface Book has been increased from £1,299 to £1,499. This increase was originally spotted by TechCrunch. The price hike is a direct consequence of the fluctuating exchange rates and economic uncertainty brought about by Brexit. As the pound weakens against other currencies, companies that import goods into the UK are forced to adjust their prices to maintain profitability. This trend has been observed across various sectors, including technology, where companies like Apple, Dell, and now Microsoft have had to increase their prices.
TechCrunch spoke to Microsoft about the price increase of the Surface Book in the UK and were given the following statement.
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.
For indirect sales where our products and services are sold through partners, final prices will continue to be determined by them.
Broader Implications for Consumers and the Market
The price increase of the Surface Book is not an isolated incident. It reflects a broader trend where consumers in the UK are facing higher costs for imported goods. This situation is particularly challenging for tech enthusiasts who are keen on keeping up with the latest gadgets. For instance, Apple had previously increased the prices of its MacBook and iPhone models in the UK, citing similar reasons related to the exchange rate and economic conditions post-Brexit.
Moreover, this trend could potentially slow down the adoption of new technologies in the UK. Higher prices may deter consumers from upgrading their devices as frequently as they might have in the past. This could have a ripple effect on the market, influencing everything from sales figures to the pace of technological innovation and adoption.
For businesses, the increased cost of technology could impact operational budgets, especially for startups and small to medium-sized enterprises (SMEs) that rely heavily on the latest tech to stay competitive. These companies might have to reconsider their investment in new hardware and software, potentially affecting their growth and efficiency.
In addition to the direct impact on consumers and businesses, there is also a broader economic implication. The increased cost of imported goods can contribute to inflation, putting additional financial pressure on households and potentially slowing down economic growth.
Source TechCrunch, The Verge
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