Lenovo today became the last of the top three global PC vendors to inform its partners of a Brexit-induced UK price rise.
Following similar announcements from the world’s third and second largest players - US-based Dell and HP Inc - global top dog Lenovo has confirmed it is raising all of its UK prices by about 10 per cent on 1 August. Number-four outfit Asus also declared its hand last week.
News of the Lenovo price hike reached some partners this morning, with one receiving an email from his firm’s account manager stating the following:
“As you are all very likely aware, the outcome of the referendum has led to a significant devaluation of GBP £ against the USD $.
“Although Lenovo products are sold to you in local currency, in common with other manufacturers, Lenovo purchases its components at a worldwide level in US dollars. We have been reviewing our position in a bid to try to delay and minimise the impact of any reaction to this result. We have unfortunately reached the limit of what we could do to mitigate this impact and a price increase has now become unavoidable. As such we hereby give notice that from 1 August 2016 all prices expressed in GBP will be increased by 10 per cent.”
Paul Barlow, managing director of Lenovo partner Servium, said the move was inevitable.
“I don’t remember too many stories about UK prices dropping when the dollar got to $1.50 but with the change in the exchange rate, this was always on the cards,” he said.
“I think Lenovo have tried to protect the channel a little bit as they have waited for what will be five or six weeks before making the change. One or two of the other vendors were a bit quicker at passing on the pain. It might come down to how long they hedged.”
Other resellers have argued the recent wave of vendor prices rises could actually have a positive impact on a channel used to battling the margin-sapping effect of falling ASPs.
But Barry Dodhia, marketing manager of Lenovo partner Hemini, said: "It's always bad when things go up as people always expect IT to go down in price.
"The dollar was at 1.6 and now it's at 1.3. This was inevitable as all the other vendors have done it. Lenovo tried to delay it as much as possible."
He added: "Some people have seen coming out of Europe as a blow, but we just have to get on with it and carry on."
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