As if the falling GBP value was not worrisome enough, Microsoft decided to increase the pricing of their enterprise products for all UK customers. In some cases this results in prices being 22% higher than they had been before. The company wants to do this as a way to “adjust to the falling pound”. These are just some of the major Brexit repercussions to come, though.
More Expensive Microsoft Enterprise Products In The UK
With the Pound Sterling continuing to decline in value, some unwelcome changes are coming for UK customers and enterprises, particularly in the software department, as Microsoft will hike the enterprise products prices by as much as 22%. This change will go into effect come January 1, 2017, and the average price increase for all products hovers around the 13% mark.
Ever since the Brexit vote took place, the Pound Sterling has been hit with a decline after a decline. For now it seems like this trend will continue for a while longer, as there is nothing to be done about it. Depending on how much worse the situation gets, the price increases by Microsoft may only be a glimpse of what is to come.
That being said, UK customers have seen several price hikes already. The latest iPhone, for example, costs 16% more compared to the same time last year due to the falling Pound. Compared to other countries this is a spectacular price increase, though not entirely unexpected. Dealing with international companies requires foreign currency exchanges, and rates are not favorable right now.
Since June 23 of 2016, the Pound Sterling lost roughly 16% of its value compared to the US Dollar. Since Microsoft and Apple are US-based companies, they will conduct price hikes to make sure they get the right amount in US Dollar. For UK consumers this is anything but good news, although things may get a whole lot worse in the coming months.
It is only a matter of time until other companies will take a similar approach. Struggling currencies will be the victims of more price hikes, whereas strong currencies will gain in purchasing power. That is, after all, the life cycle of finance in the world we live in today. If only there were a way to hedge against the falling Pound Sterling!
At this time it may be well worthwhile for many companies dealing with Microsoft products to consider a switch to Bitcoin. The technology giants accept Bitcoin for their products and services, although that option is usually only made available to US residents. Now would be a good time for Microsoft to expand this offering to other countries as well.
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