HP ups prices in wake of weakening pound

HP has raised its PC and server prices

HP today became the first major systems vendor to react to the weakening pound by raising UK distribution prices for its PCs and servers.

Because most components are denominated in dollars, the cost to system vendors buying in pounds has shot up by as much as 10 per cent in recent weeks.

HP confirmed that prices across its Industry Standard Server and Personal Systems Group portfolios will rise by mid to high single digits today. Other major system vendors, including Acer, are expected to follow suit.

The news was met philosophically by resellers that claimed end users would swallow higher prices if everyone passed on the increase.

Barry Dodhia, marketing manager at VAR Hemini, said: “End users will be very logical about this once it becomes clear that it is just about the exchange rate.”

Andrew Henderson, commercial director at VAR Lanway, claimed a rise in channel prices could enable resellers to pocket extra margin.

“If HP wants to increase its margins we want to do the same. If we are making two or three points on an HP machine now, we can raise that to four or five when we increase the price and the customer would not bat an eyelid,” he said.

But Marie-Christine Pygott, senior PC analyst for Context, feared the increase may prompt firms to postpone refresh deals for another year.

“If prices [through distribution] go up, average selling prices are bound to go up. Corporates are being very cautious at the moment over buying decisions, and this may accelerate that effect,” she said.