Feeds

HP blames falling pound for PC and server price rises

'mid to high single digits'

Build a business case: developing custom apps

HP is raising UK PC and server prices on Monday, 15 September. But printer and computer storage prices are staying put, for now.

HP blames the falling pound for raising trade prices by "mid to high single digits". This will have a knock-on effect at shop level, once distributors, resellers and retailers add their margin. So end-users will be paying at least 10 per cent more for their kit, come October.

In recent weeks, the pound has fallen about 10 per cent against the dollar. Today, it is trading at $1.75, but some pundits expect the pound to fall even further, to perhaps $1.60. For most of this year, the sterling-dollar exchange rate has been in the high $1.90s. In 2007, the pound traded for much of the year above $2, reaching an absurd $2.11 for a few days in November.

In most sectors, currency-driven prices rises would be par for the course - but computer hardware prices never go up, do they?

HP's price rises come just before the start of the busiest consumer shopping season for PCs and at a time when shoppers are staying away in droves. So bang goes PC World's Christmas.

Where HP leads, other hardware vendors are sure to follow: expect Lenovo, Acer, Toshiba and so on to raise prices real soon.

Dave Poskett, HP director of the solutions partner organisation in the UK and Ireland, today briefed the UK channel on the moves.

“We looked at and the cost of doing business for all the business units and at this stage it has been determined there is a requirement to raise prices for ISS and PSG, but not for the Imaging and Printing Group (IPG) or storage,” he told CRN.

This means that printers and computer storage carry much fatter margins than PCs and servers, and HP is willing and able to absorb some of the sterling loss.

Weirdly, over the summer, three enterprise software vendors, Oracle, VMware and Citrix, raised UK prices, citing a weak dollar. Their reasoning was suspect then; it looks surreal now. ®

Boost IT visibility and business value

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.