For those in the market for a new computer this year, budget constraints are becoming increasingly challenging. The prices of personal computers have been on an upward trajectory, primarily driven by shortages of key components and significant price hikes in essential hardware such as RAM and storage devices, including both hard drives and SSDs. Furthermore, reports indicate that manufacturers may soon face increased costs for motherboards as well.
However, the issue extends beyond just hardware. Recent reports reveal that the cost of Windows licenses for manufacturers is expected to rise by as much as 10%. This information comes from various technology news outlets, including Windows Central and Windows Latest, which cite a report by Taiwan’s Economic Daily News, indicating that some PC manufacturers are facing a 7% to 10% increase in the costs associated with Windows 11 licenses.
PC manufacturers, as part of their original equipment manufacturer (OEM) expenses, purchase Windows licenses in bulk, allowing them to benefit from substantial discounts compared to the retail price consumers pay for a new copy of Windows 11. However, with the ongoing cost pressures from other components, a notable increase in Windows 11 licensing fees could prompt manufacturers to pass some of these additional costs onto consumers. The Economic Daily News report suggests that PC price hikes of approximately 5% could occur in the next quarter as a result of the anticipated Windows cost increase.
When approached for comment, a Microsoft representative declined to provide any information regarding the report.
Variable Pricing Trends
A translated version of the Economic Daily News article contains insights from an unnamed executive at a PC brand, stating that while Microsoft typically implements annual increases in licensing fees of single-digit percentages, this year’s hike has escalated to between 7% and 10%, marking a significant change.
The OEM pricing structure for Windows varies not only by manufacturer but also by the type of processor utilized in the computers. Major PC manufacturers in the region, such as Asus and Acer, have already confirmed increases in their PC prices earlier this year. For instance, Asus reported a staggering 30% price increase for its products in Taiwan.
In a blog post detailing laptop price hikes in July, Framework noted, “an increase in Windows license costs” as a contributing factor.
While users of Windows 10 were able to upgrade to Windows 11 for free, the cost for consumers who are not OEM manufacturers stands at $139 for the Home version and $200 for the Pro version.
