Microsoft is to Raise Pricing in British Pounds by up to 22pct in Wake of Brexit

Effective January 1, 2017

[engine]

In the wake of Brexit, and the falling value of the Pound, Microsoft has said it will be increasing the price of its products sold in British Pounds by up to 22% and it'll become effective as of January 1, 2017.

From January, British pound prices for on-premises enterprise software will increase by 13% to realign close to euro levels. Most enterprise cloud prices in British pounds will increase by 22% to realign close to euro levels. Even after this adjustment, customers across the region buying in British pound will still find our cloud offerings highly competitive. For indirect sales where Microsoft products are sold through resellers, final prices and currency of sale will continue to be determined by them. In the EU/EFTA region, partners will continue to have access to prevailing prices in euro, Norwegian krone, Swiss franc, Swedish krona, and Danish krone, along with revised prices in British pounds. Microsoft is to Raise Pricing in British Pounds by up to 22pct in Wake of Brexit [blogs.technet.microsoft.com]

[graeme_p]

It is not "in the wake of brexit", as Brexit has not happened yet.

It adjusts prices for a decline in sterling not just after the Bexit vote, but before as well (22%!).

[engine]

Fair enough, well, how about in the wake of brexit vote.
It's still the same outcome.
Either way, the brexit vote has resulted in a decline of Sterling.

[edited by: engine at 10:33 am (utc) on Oct 26, 2016]

[mack]

22% increase? Yea I'm sure that's all due to the fall in sterling. Especially when this will come into effect in January. That's sharp foresight!

Mack.

[graeme_p]

Look at a sterling vs euro chart - this is for a decline in sterling vs the euro that started long before the brexit vote (i.e. it is decline before brexit vote + decline after approx equals 22%)

[engine]

The most significant decline (change) occurred 23/24 June. The exact same occurred USD vs Sterling. If the slow decline had remained on track it would be nowhere near 22%.
However, nobody can predict what may have happened had the outcome of the brexit vote been different, or what will happen in the future. Stability is the key, or no sudden changes make it far easier to do business.

[graeme_p]

@engine, my point is that the 22% decline is equal to the post Brexit fall + the pre-Brexit fall, not one or the other.

Funny how the language of currencies suggests a fall is a bad thing! "decline", "weaken"....

[Sagacity]

That's outrageous. God bless my Office 2003/Win Xp workhorses.