The United Kingdom is only just starting to feel the Brexit backlash. Following the country’s decision to leave the European Union, the pound dropped to a 31-year low against the dollar. The weakened British currency has prompted Dell to announced it will raise prices in the country, and now HP is about to do the same.
Tech giant Dell confirmed last week that the pound’s fall from $1.50 to $1.30 meant a 10 percent price increase on all its machines in the UK starting next month.
Now, HP has become the second technology vendor to confirm it will be increasing prices in the UK as a result of “unprecedented” currency fluctuations. In an email sent to partners and leaked to CRN, the firm stated:
As you will be aware, we have seen an unprecedented weakening of the pound to US dollar exchange rate over the past few weeks.
In order to maintain a sustainable and consistent approach to our operation in the UK and Ireland, we have taken the decision to make some adjustments to our channel-supported and directly-contracted end-user pricing strategy. Effective from 1 August, we will be implementing an adjustment of circa 10 percent across HP's Personal Systems portfolio.
This applies to all HP commercial/business products in the HP Personal Systems category (core PC/laptop, value technology and mobility solutions). As always, you may freely determine your resale price to your customers.
OnePlus has already raised the price of its OnePlus 3 handset by 6.5 percent in the country following the referendum result, and more big firms are expected to follow in its footsteps. The Guardian reports that Lenovo is also considering price increases in response to falling sterling, and The Inquirer’s sources say Cisco could add 14 percent onto all of its UK products.
72 percent of the United Kingdom took part in the recent referendum, which saw 48 percent of people voting to stay in the EU and 52 percent deciding the country would be better off going it alone.