Windows licence costs are reportedly rising for PC makers, adding to the price pressures already squeezing buyers who are shopping for a new computer this year. Alongside component shortages, the increases could push retail prices higher across the market.
As with other electronics, including smartphones and tablets, the price of computers has been climbing steadily due to shortages of certain parts and steep increases for components such as RAM and storage devices like hard drives and SSDs. Motherboards have been rumoured to face price hikes soon. But it is not just hardware: reports suggest the cost of Windows licences for manufacturers is rising by up to 10%.
How much Windows licences are rising
Reports claim that some PC manufacturers are seeing a 7% to 10% increase in the cost of Windows 11 licences. PC makers pay for Windows as part of their OEM, or original equipment manufacturer, costs. Because they buy licences in bulk, they get a sizeable discount over what a consumer would pay for a new copy of Windows 11.
Given the existing cost pressures from other components, a significant Windows 11 price hike could lead manufacturers to pass on some of the added cost to buyers. PC makers could raise prices by about 5% over the next quarter due to the reported increase. A representative for Microsoft declined to comment on the report.
Variable pricing and confirmed increases
Information attributed to an unnamed PC brand executive says that while Microsoft typically raises licensing costs every year by single-digit percentages, that hike has reached 7% to 10% this year, a notable jump. OEM pricing for Windows varies by company and even by the type of processor used in the machine.
Two of the largest PC makers in the region, Asus and Acer, already confirmed PC price increases earlier this year. In the case of Asus, the price increase was 30% for Taiwan. Framework cited an increase in Windows licence costs in a blog post explaining price hikes for its laptops in July.
While Windows 10 users were given Windows 11 as a free upgrade, consumers who are not OEM manufacturers pay around £110 for the Home version and roughly £160 for the Pro version of the operating system.
