back to article Microsoft ups Surface slab prices for Brits. Darn weak pound, eh?

Microsoft has increased hardware prices in the UK for a second time this year, citing the decreased value of the weaker sterling currency when repatriated as dollars. Its top-of-the-line Surface Book will today set users back a whopping £3,049, £400 more than it would have cost if purchased yesterday. Price increases across …

Stop

But...

Will those prices increases be reversed when the GBP goes back up?

No thought not!

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Mushroom

Re: But...

Like if we decide to remain in the EU anyway...

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Re: But...

GBP going backup against the USD any time soon? About as likely as Mr Trump joining Liberty (or the ACLU for my left-pondian friends).

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Anonymous Coward

Re: But...

My guess is real prices won't actually rise until the glut of Surface Pros 3/4 are shifted. It's just a ploy to get rid of stock before Surface Pro 5 launch.

And if Microsoft integrate the SSD (like the macbook Pro w/touchbar) I'll be telling them to fcuk off too. I'm not paying Apple or you for designs which potentially fleece the customer. Taking advantage of those data loss situations is pure greed, as well a Potential Data security issue. No, I don't trust your staff.

And if people say I should always have a backup, we all know there are situations that arise when there wasn't one, hence why Apple wants to milk this potential revenue stream.

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Re: But...

As IT companies generally seem to convert on the basis of 1 GBP = 1 USD, I can see no currency fluctuation... Unless they'd like to admit to ripping people off for the last few years?

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Joke

"If we had a pound for every time a firm cited Brit currency woes"

...then you might actually be able to afford some of this stuff?

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Just say 'sod off MS I ain't paying that much'

and go find an alternative.

or

go buy it in the USA and if you choose the place carefully you can avoid all sales tax. But don't tell anyone especially HMRC otherwise they'll be after you for the VAT.

It is moves like this this that really make people sit up and think again before contunuing their love-in with MS.

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Re: Just say 'sod off MS I ain't paying that much'

Now there's the kind of sound advice only an anonymous expert off the internet can provide; tax evasion.

What could possibly go wrong?

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Anonymous Coward

Re: Just say 'sod off MS I ain't paying that much'

It is moves like this this that really make people sit up and think again before contunuing their love-in with MS.

That was my initial thought: with this sort of pricing it makes MacBooks attractive again, although those you can't take apart and use as tablet which is a neat idea. I haven't seen one op close yet so I don't now if the pen registration is accurate enough to replace a Wacom Cintiq (ditto for the scaled up Apple iPad thing) but that would be the one use that could make me buy something that expensive.

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Re: Just say 'sod off MS I ain't paying that much'

"this sort of pricing it makes MacBooks attractive again"

...for how long...? I wouldn't be surprised if Apple joined in the bandwagon at some point.

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Windows

Re: ...or go buy it in the USA

That's if Trump will let you in. If, like me, you happen to be an Islamic Mexican terrorist, you've got no chance.

And even if you could get in, the 16% price hike will still be there in your currency exchange rate.

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Anonymous Coward

Re: ...or go buy it in the USA

my dog is the terrierist

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Go

Re: Just say 'sod off MS I ain't paying that much'

Montana is closest for me with no sales tax with fantastic views too.

No Microsoft Stores either mind but Amazon will deliver to your hotel (& the sales tax is charged at the rate of the your delivery address).

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Re: Just say 'sod off MS I ain't paying that much'

Apple already put up their prices - MS are just the latest in a long line. http://www.bbc.co.uk/news/technology-37799235

http://www.cnbc.com/2017/01/17/apples-uk-app-store-prices-will-rise-25-percent-following-brexit-currency-fluctuations.html

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Anonymous Coward

Re: ...or go buy it in the USA

@ Richard Scratcher:

As of 2010 there are only 3,762 Muslims in Mexico, apparently not a popular destination for the followers of Islam. That might have something to do with it being a very staunchly catholic country or perhaps the low GDP per capita.

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Re: ...or go buy it in the USA

@AC

Or maybe they just don't like Mexican food.

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Anonymous Coward

Re: ...or go buy it in the USA

I have two - I suspect a cell - and they have just eaten a visiting labrador's food. A conspiracy no less....

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Silver badge

Re: Just say 'sod off MS I ain't paying that much'

>Apple already put up their prices - MS are just the latest in a long line.

Thanks for the links, if you read carefully, the first mentions hardware price hikes, the second AppStore (software) price hikes.

In this article, MS, who had already increased the price of the surface in 2016 (22%) is increasing it somewhat more, another 10%, iirtac.

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Re: ...or go buy it in the USA

my dog is the terrierist

Likewise. In fact he's worse - he a *double* terrierist (JRT/Staffie cross).

But he's still frightened of the cats.

So there you go America - a solution for your little terror-problem[1] - moar cats! Cats with everything! Brewhahaha!

Sorry. Got carried away.

[1] More in the eye of the beholder, than in actuality.

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Vic
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Joke

Re: ...or go buy it in the USA

a solution for your little terror-problem

We already have a solution for the Islamic terror problem: removal of the motivation.

Lemmy is dead. There are no more virgins in Heaven...

Vic.

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Pirate

Re: ...or go buy it in the USA

@ Richard Scratcher & AC:

Or perhaps they are scared of the Mexican drug cartels, who are just as effective at removing opposition as their own medieval death cult.

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Are they actually repatriating it at the moment?

I thought all the big companies were holding the cash offshore until the next rates 'amnesty' when they can bring it home without paying as much tax?

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As if..

Win 10 wasn't enough reason not to buy a surface.

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Anonymous Coward

Hmmm but those price rises, just like Apple's, are actually higher than the fall in Sterling.

BIG business always looking for an opportunity to shaft you.

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big business with a big shaft always looking to ream you...

Now, that's better...

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There are only two reasons not to like Microshaft: everything they do and everything they say. Other than that, they are flawless.

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"pipping VMWare"

Nah, you just have a short term memory.. VMWare raised their prices by something like 30% about 12-18 months ago.

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Oh noes, MS is putting its prices up...

Mr. Microsoft - "I have put my UK prices up"

Everyone in the UK - "Knock yourself out, we weren't going to buy any anyway."

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Anonymous Coward

Re: Oh noes, MS is putting its prices up...

And then everyone goes out and buys a PC with Windows, buys an Office 365 subscription, installs an MS SQL server for their data......

Same old same old, you'll whine but you'll pay, because no one gets fired for buying MS do they.

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Re: Oh noes, MS is putting its prices up...

Lets take each statement individually:

"Everyone goes out and buys a PC with Windows", have you checked the level of PC sales lately?

"buys and Office 365 subscription" - Not happening in my business. If you want to send me a document use pdf.

"installs MS SQL server" - If I wanted an SQL database, which I don't TYVM, like a lot of other people, I'd use MariaDB

"no one gets fired for buying MS do they." - they do if they drag an organisation into a world of MS mediated misery.

SO , a little hyperbole, but clearly the way things are headed. Additionally, lifting the "No-one ever got fired for buying IBM" saying is looking a little sick now donchathink?

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Re: Oh noes, MS is putting its prices up...

>Same old same old, you'll whine but you'll pay, because no one gets fired for buying MS do they.

Ok, ok... We'll only buy 16% less... which is the reason they've switched to subscriptions - you can't easily terminate them.

However, if people suddenly see their opex rise, they are going to start looking for other solutions. Maybe ones which allow them to sweat the assets.

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Profiteering?

see http://www.xe.com/currencycharts/?from=GBP&to= &view=1Y

In the couple of months before the Brexit vote the 1 UK Pound was worth around 1.45 US Dollars. Over the last couple of weeks it has hovered around 1.25 US Dollars which is a 14% drop.(up from a low of 1.20 US dollars in January) To get back the same US Dollar value the UK prices would have to go up by 16%. Anything more cannot be put down to currency exchange changes but I do not think M$ are guilty here.

Putting up the Surface prices by 15% does not seem unreasonable by these measures; they were poor value before June 2016 and they still are.

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Supply and demand?

I'm pretty sure that the people at Microsoft report their quarterly results in dollars. When they sell to customers in other countries, they account for value added tax where applicable, shipping if necessary, cost of support (employing locals), regionalization (spelling checkers with colour and favourite), etc...

If the value of a local currency drops too drastically relative to the value of the dollar, Microsoft must increase prices to cover the exchange rate related losses.

If the market can't or won't bare the adjustment, they will incur a different set of losses and choose to stay and fight or give up and leave.

Microsoft probably waited for the pound to reach a level they expect be stable and made a big painful adjustment that should compensate for possible further minor shifts allowing the U.K. Market to adjust to the change and go on as normal. I also assume they are not sitting and celebrating this change or even taking pride in it.

Consider as someone living in Norway, our currency devalued by 50% during the oil crisis and hasn't recovered even though oil more or less has. We feel your pain but also understand that $1 is $1 and it takes more crowns to make a dollar today than 3 years ago.

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Anonymous Coward

I like the picture of S Nadella

The expression on his face says "This is how I hold your balls! Pay or else..."

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Silver badge

All Microsoft products suck. Except their vacuum cleaners.

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Hold on a minute....

The lead into the article is "Microsoft has increased hardware and software prices in the UK for a second time this year, citing the decreased value of the weaker sterling currency when repatriated as dollars."

.... all I ever hear on this subject is that American corporation tax is so high MS, Apple et al leave the money in <insert tax haven here> rather than repatriate it, therefore surely the currency fluctuation isn't relevant and 'losses' are entirely theoretical. The Donald even made one of his revolutionary / exciting / mad / deranged / hysterical speeches to the GOP on the subject

http://fortune.com/2017/01/17/trump-gop-corporate-taxes-imports/

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Silver badge

Re: Hold on a minute....

But the £ has devalued against more than just the $...

For example go and compare GBP to BMD (Bermuda) you'll see the same dip around June/July as we see for USD.. this is true for pretty much any currency you can name.

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Anonymous Coward

Re: Hold on a minute....

Surely you're not serious?

The Bermudian Dollar is pegged at par 1:1 with USD.

Most of the Brexit calamity stories the media come up with are rubbish. And that's from someone who didn't want it to happen.

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Anonymous Coward

Re: ...or go buy it in the USA

Not just M$ guilty of this - top end NVidia kit M6000 cards for their VCA line. At the moment it's cheaper to buy them in the US (paying local taxes) - then have someone in the US courier them over (for the price of a free flight).

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Facepalm

Mexico will pay for that

It's true!

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Anonymous Coward

Yay!

Payrises all round?

*crickets*

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Silver badge

Why can't Apple grab the opportunity now and elbow in on the corporate market for real?

Some kind of normal file system access where the user knows where things are and can copy them without using the cloud would be a great start.

A simpler way to deploy your own apps would be a good continuation.

I think this would go a long way towards sinking MS.

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