Microsot News & Update: Company Considering Price Hike To UK In Connection To Brexit?

Microsoft is following the lead of other companies for raising its price in the UK in relation to Brexit. UK's Brexit has devaluated the British Pound which prompted companies such as Microsoft to cut their losses.

According to CNET, Microsoft followed the lead of companies such as OnePlus and HTC. These companies are increasing its prices in connection to Brexit.

Microsoft announced last week that as of Jan. 1, 2016, it will be increasing its price of its enterprise software and cloud services in the United Kingdom. The decision of Microsoft because of Brexit will directly affect business customers. There are also some Microsoft business customers who are not to be affected by the price hike because of existing agreements.

The business customers of Microsoft because of Brexit to affected will feel the increase of up to 13 percent of its enterprise software and 22 percent for the cost of cloud services. This move of Microsoft is for the purpose of re-aligning its prices with the euro.

Ever since the United Kingdom decided to longer be part of the European Union, the value of the British Pound has greatly decreased which led some electronic companies to increase their prices. The phones of OnePlus, A China-based company raised its phone prices from 309 to 329 and HTC phones from 689 to 759.

The United Kingdoms's decision to leave the European Union has made electronic devices more expensive including Microsoft products. Though Microsoft price increase only affects business customers because of Brexit, this could be a problem soon for British tech supporters.

As added by ZDNet, Microsoft's business customers the changes will not affect existing orders under annuity volume licensing agreements for products considered to be under price protection. Microsoft customers who are under Enterprise Agreements are protected in terms of price of previously ordered cloud services and enterprise software.

Microsoft customers with cloud commitment subscriptions are to also receive protection of price under subscription term. The term with Microsoft subscriptions is usually from 12 months from the start of paid subscription.