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Channel left to pass on Microsoft Surface price hikes

The decision by Microsoft to increase prices of its hardware by up to 15% is a move that will have implications for the channel

One of the biggest problems with price rises is that it is the channel that has to explain face-to-face with the customer why their IT costs just went up.

Out at the coalface the talk about the value of the pound and the impact of Brexit are a real issue that resellers are having to grapple with.

There have been some price rises already with the large hardware vendors feeling they had no choice but to pass on the currency fluctuations and now that list is getting longer with another round of hikes because the pound continues to perform weakly.

Step forward Microsoft, which has revealed that it is increasing hardware prices on the Surface and the Surface Book by 15%, as a direct consequence of the state of Sterling.

The vendor has given the channel some leeway on exactly how much it will pass on those increases but with it being so public most customers will probably be braced for the full impact.

"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.  These changes only affect products and services purchased by individuals, or organisations without volume licensing contracts and will be effective from February 15, 2017," stated a Microsoft spokesperson.
"For indirect sales where our products and services are sold through partners, final prices will continue to be determined by them," they added.

The price increases come at a time when Microsoft is working hard to try and encourage the channel to sell more of its Surface line. Schemes like a try-before-you-buy and increased services have all launched in the last few months to tempt more users.

Prices of some of the products could increase by up to £400 for the top-end products.

Other vendors that have looked at prices include HP and Apple and earlier this week the speaker manufacturer Sonos revealed that it was also increasing the costs for customers because of exchange rates.

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