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Technology / Hardware

Brexit results in tech vendor price rise as sterling continues to plummet

Tech prices are being put up as a direct result of the UKs decision to leave the European Union.

Dell has implemented a blanket 10% increase in the costs it charges UK retailers, while Chinese smartphone company OnePlus has also raised its prices.

Intro 2020, a company that is used by camera equipment-makers to bring their goods to the UK has said that it will also be raising its prices.

The moves come as a result of the Brexit vote which resulted in a 12% drop in the value of sterling against the dollar, a 31-year low.

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A spokeswoman for Dell said: "In line with the rest of the industry, our component costs are priced in US dollars, and unfortunately, the recent strengthening of the US dollar versus sterling and other currencies in the EMEA [Europe, Middle East and Africa] region, following the UK’s decision to leave the European Union, will have a direct impact on the price we sell to our UK customers and partners."

OnePlus is upping the price of the OnePlus 3 by 6.5% to £329 from £309 from 11th July as it looks to protect its margins.

The company said on its website: "While we’ve held off action for as long as we can, the sharp drop witnessed in the currency markets following the Brexit decision has forced us to re-evaluate the OnePlus 3’s pricing in the UK."

Businesses and consumers alike will be hoping that these are just a couple of rare examples of prices being increased as a result of the fall of Sterling, but retail consultancy Verdict predicts that further increases will be on their way.

Andrew Hall, consultant at Verdict told the BBC: ""These will come sooner rather than later for those who have not hedged currency far in advance or for whom there is little flexibility in operational costs to mitigate currency fluctuations."

More businesses are expected to be informed of price rises in the coming weeks as the dust begins to settle from Brexit.
This article is from the CBROnline archive: some formatting and images may not be present.