HP first to raise PC prices

HP will raise UK distribution prices for its desktops, laptops and servers on Monday, with some of the other big system vendors imminently expected to follow suit.

The recent weakening of the pound against the dollar has caused vendor costs to spiral by as much as 10 per cent in recent weeks, as most components are denominated in dollars. The global rise in the cost of doing business also contributed to HP’s decision.

Dave Poskett, director of Solutions Partner Organisation for the UK & Ireland at HP, confirmed to CRN that prices would be raised on Monday for all products in its Industry Standard Server (ISS) and Personal Systems Group (PSG) portfolio.

“We will finalise over the next couple of days what the increases will be, but they are likely to be in the mid to high single digits. It will vary by specific product categories," he said.

Poskett stressed prices will remain unchanged for its printer and storage ranges.

“We looked at and the cost of doing business for all the business units and at this stage it has been determined there is a requirement to raise prices for ISS and PSG, but not for the Imaging and Printing Group (IPG) or storage,” he explained.

Poskett said he hoped partners will recognise that HP is hamstrung by the economic backdrop and pointed out that HP is investing $250m into its channel this year. He also stressed that HP has a $3.6bn R&D bill to meet across its whole product portfolio.

Channel sources insisted similar price rises are imminent from some of the other big system vendors, including Acer. Acer was unavailable for comment.

Barry Dodhia, marketing manager at VAR Hemini, said: “If HP is doing it, all the others will do it very soon. The exchange rate is killing the vendors as the dollar against the pound has strengthened from about $2 to $1.75 in the last three months.”