The Brexit vote has been blamed for many things and lauded for few it seems. One of the ‘many things’ that, in the short term at least, is going to smart a little is the cost of overseas imports. Britain’s Tech imports totalled 4bn in September this year and is obviously a major sector of the British foreign import market. It should therefore come as no surprise that Lenovo, the world’s largest laptop manufacturer along with HPE (Hewlett Packard Enterprises or HP to you and I) have increased their pricing in the UK by 10% since the vote. However, come the 1st of December another round of price increases will push things up again by another 10% or so among these and other giants of technology. Apple too has pushed the envelope, albeit in a more clandestine way. Their recent models offer a higher like for like spec on previous models, but the discrepancies average out at a significant increase.
These price increases on the back of the weak pound were inevitable, but it is no less disappointing to find that a laptop you could pick up for £300 six month ago, will now cost £360.
I would always tell clients looking for a basic laptop not to look at anything less than £300 if they want some semblance of quality about their new computer. Now that figure is more than £350 with a recommended spend of £400 for a general use laptop.
Further price hikes are inevitable too, UK missed out on Sonos’ Euro price hikes of about 15% last year due to weak Euro v USD, I expect they will correct that soon enough.
I am writing this 3 hours after Trump’s presidential victory so markets will do what they will with that news. The question in my mind is whether or not this article even makes it to print!
Merry Christmas and thanks for reading.