dell bexit

Did Brexit Raise Tech Prices?

In wake of the Brexit vote, US-based computer manufacturer Dell and Chinese smartphone company OnePlus both raised the prices of their products sold in the UK. Both manufacturers cited the country’s recent vote to leave the EU as the reason behind the change in price.

price increaseWhile these companies may be the first to raise their prices in the UK, there’s indication that they won’t be the last. Intro 2020, a company used by camera equipment-makers, has claimed that it will soon follow suit, stating that it has been “punched in the stomach very hard” as a result of sterling’s drop, one of many unforeseen consequences of the Brexit referendum.

Considering the pound hit a 31-year low against the dollar earlier last Wednesday, the price rises in the tech industry are likely to continue. In fact, falls against certain Asian currencies have only increased.

While Dell has declined to give specifics in terms of product rise changes, the Register reported that the computer manufacturer had already posited 10% blanket increase in the costs of all products for UK retailers. Dell claimed that it delayed the move for as long as possible, as one spokesperson explained:

“In line with the rest of the industry, our component costs are priced in US dollars, and unfortunately, the recent strengthening of the 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,” the spokesperson stated.

“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,” she concluded.

OnePlus, a handset manufacturer that sells a variety of popular products in the UK, recently revealed that it would be selling its OnePlus 3 for 329 pounds from July 11 onward in an attempt to protect its “extremely thin margins.” That comes out to a rise in price by 6.5% from its current price of 309 pounds.

“While we’ve held off action 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,” the company explained via its website. “Accessories will not be affected,” it assured.

b cionIntro 2020, the aforementioned camera part manufacturer, has plans to rise its own prices by 10-12%, a decision that is likely have a price-rising domino effect that will take its toll on all its customers, including Tamron, Tokina, Samyang, Hoya, Keno, Velbon, Sunpak and Tamrac.

“For virtually everything we handle, there will be price increases from 1 August,” explained Intro 2020 general manager Jim Mackay. “The currency situation is precarious for us at the moment- my feeling is that it’s going to be six to nine months before we get some stabilization.”

“It’s painful,” he continued. “We expect our turnover will fall as a result.”

As more and more companies raise prices in the UK, only time will tell if its citizens continue to support the Brexit decision.