Prices in the channel could rise immediately in light of the EU referendum result, industry players have warned as they react to the news.
This morning, 52 per cent of the UK voted for the UK to leave the EU, shaking global markets and seeing the value of sterling sink 10 per cent to its weakest value since 1985, Reuters reports.
Analyst Canalys tweeted an immediate reaction to the news.
"Tech vendors need to cut their forecasts for the UK in H2 2016, as falling GBP leads to price rises. Uncertainty will reduce spend too," said the tweet.
Speaking to CRN, principal analyst Matthew Ball explained that the vote to leave could strengthen existing currency headwinds and cause further issues.
"The strong US dollar has had a major impact on IT prices over the last two years or so as it is," he said. "A lot of vendors are US based and they have to import their products into the UK, and the weaker pound over the last 18 months has resulted in price rises. We're now seeing that the immediate shock of the decision has pushed the value of sterling down to its lowest levels in 30 years. Unless it recovers in the next few days, we're going to see a bigger delta between imports and the US dollar. It is going to have a big impact on [IT] spending.
"The other big impact will be that the decision will lead to a lot more uncertainty around IT spending from companies.
"This isn't going to be rectified in the short term – there are real long-term issues. So there will be a double negative.
"It could delay a lot of investment from business, particularly those which trade internationally. Our short-term outlook is pretty negative because of the immediate shock. Once things settle down, there's a lot of uncertainty around trading impacts and the political leadership.
"Uncertainty for businesses is really bad and that's going to have a major impact on people's spending on IT, plus the other bits that go with it. It is going to be bad news for the UK economy over the next six or nine months."
Entatech chairman Dave Atherton (pictured) agrees that issues around pricing could be problematic, with immediate effect.
"Prices of stock are going to go up," he told CRN. "The price of everything will go up. The pound has dropped by five per cent or more, and it is changing as we speak. Prices will all go up – all reseller prices are in dollars.
"It will be pretty immediate, I would have thought. A [price for a] fresh order placed for anything today will depend on how well people have been positioned on holding dollars. That's the big thing. One thing is for sure: British resellers don't have dollar customers. The IT channel acts as a great big foreign exchange."
ANS Group chairman Scott Fletcher, who has been vocal in his support for the Brexit campaign, said currency concerns have been blown out of proportion.
"Democracy has spoken," he told CRN. "How amazing for 72 per cent of the population to come out and vote. It shows real faith in British democracy. The whole thing with the markets this morning – the BBC and Sky are reporting is as Armageddon or Black Monday – but the markets have pretty much recovered.
"[Price issues] were a potential worry because obviously we buy Cisco kit and whatever in dollars. But it seems to have stabilised and I think the markets believe in Britain. We've got a strong economy."
A number of technology giants, such as Microsoft, Cisco, HPE and EMC, lent their support to the Remain campaign before the vote.
In a note published this morning, Julian David, CEO of TechUK – which represents more than 900 tech companies in the UK – said that the UK remains a hub for technology firms despite the uncertainty.
"This is not the outcome that the majority of TechUK members were hoping for," he said. "It opens up many uncertainties about the future. However, the UK tech sector will play its part in helping the UK to prepare, adapt and thrive in a future outside the EU.
"Today, just as it was yesterday, the UK remains a great place to start, locate and grow a tech business. It is full of talented, skilled and passionate people with the ideas and creativity to make great things happen."
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