HP first to raise PC and server prices

A strengthening dollar has forced Hewlett-Packard to raise its PC and server prices by 5 to 10% in the UK from Monday and other major vendors are expected to follow suit.

A strengthening dollar has forced Hewlett-Packard to raise its PC and server prices by 5 to 10% in the UK from Monday and other major vendors are expected to follow suit.

In the last month alone the dollar pound exchange rate has fallen from $1.55 to $1.39. Yesterday, the dollar saw it largest one month rise for a decade, reaching its highest level since September 2007.

Talking to Microscope, Dave Poskett, HP director of the solutions partner organisation for the UK and Ireland confirmed that products in the Personal Systems Group and Industry Standard Servers will rise.

"Given the performance of the pound versus the dollar I can confirm that from Monday 15 September we will raise prices by mid to high single digits," he said.

No other business units within the vendor plan to make changes imminently, "they all have their own P&L and have to look at the cost of transacting business."

The European Commission said the UK, German and Spanish economies would technically be in recession by the end of 2008 following negative growth in the second half of the year.

Poskett admitted he did not know what the impact of the changes would be but said HP was managing the situation with partners and customers.

The industry prices in dollars so it likely that other vendors will follow suit. Neil Marshall, EMEA channel director at Acer, said from a European perspective "we are under the same pricing pressure as everyone else."

This point was echoed by Neil Bramley, business to business director at Toshiba, "We have a responsibility to ensure that our business is sound and exchange rates are part of that process so it's a watching brief."

The margins that PC and server vendors make meant they could not hang around when currencies fluctuated significantly said Jeremy Davies, senior partner at analyst Context.

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