HP Inc increases UK prices due to Brexit

July 11, 2016

The Recycler Magazine

hplogonewThe OEM has reportedly told suppliers that prices will increase by 10 percent as a consequence of the UK’s decision to leave the EU.

CRN (registration required) reported on the price rise, which is set to come “into play” on 1 August this year, and the site reported that the price exit – according to HP Inc – is because it wants to “maintain a sustainable and consistent approach to our operation”. The decision was made “in the wake of the Brexit vote”, and follows Dell’s decision last week to increase its UK prices for the same reason.

HP Inc had sent a statement to the news outlet at the time of the Dell announcement pointing out that it was “carefully assessing the Brexit situation”, but had “stressed it is business as usual”. Dell’s decision to “implement price rises following the Brexit-fuelled slump in the pound’s value”, saw it release a new price list that increased prices for UK customers by eight or nine percent “across its portfolio”.

Analysts Canalys had warned, in the aftermath of the referendum vote, that “US vendors will begin hiking the prices of their products, and warned this could see the UK IT market shrink by as much as 15 percent next year” due to customers “becoming more cautious”.

Dell released a statement, which read: “Dell’s priority is always to provide great value to our customers and partners. We carefully consider price moves for our customers and partners, and have worked diligently over the past several months to postpone any increases pending the outcome of the EU referendum.

“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 the euro and other currencies in the EMEA region, following the UK’s decision to leave the European Union, will have a direct impact on the price we sell to our EMEA customers and partners.

“We understand that this is an uncertain time for many British businesses and we will continue to work closely with our customers and partners to provide great value products and services.”

HP Inc sent a statement to the news outlet pointing out that it is also “carefully assessing the Brexit situation”, but also “stressed it is business as usual”.