The U.S. tech firm revealed planned price hikes that will increase the price of some products by as much as 22% on the heels of a steep descent in the value of the pound.
The hikes, which will come into play on Jan. 1, 2017, will only affect Microsoft's business customers.
While Microsoft is not the only tech company to hike prices following the Brexit vote in June, its increases are more significant than those of rivals such as Apple, Dell and HP.
The pound has taken quite the fall, plunging by almost 20% against the dollar since the referendum in June.
Some of the hardest hit companies are those that earn revenue in Britain but report such revenue in other currencies. Technology companies are particularly susceptible due to the fact that many of the components utilized in the manufacture of their wares are valued in dollars.
“Although the UK seems to have avoided the worst of the post Brexit predictions, Microsoft could be the first of many companies forced to implement significant hikes in the region,” said an analyst at Shenzhen based Kaiser Hoffman Capital.
Microsoft stated that its new pricing structure would pertain to all business clients, not excluding those in the public sector.
It's an adjustment that could end up being expensive for the U.K. government, which regards Microsoft as one of its main suppliers.
While the government has not revealed the monetary extent of its business with Microsoft, it is known that the tech giant is the favoured supplier of software solutions to the British Government.
About Kaiser Hoffman Capital:
Whether your growing small business requires prudent, effective guidance or you want to ensure that you and your family maintain their living standards after you’ve retired, a comprehensive, adaptable wealth management solution gives you the best chance of achieving your goals – whatever they might be.
You can be sure that Kaiser Hoffman will pursue your dreams as if they were our own. Irrespective of your objectives or your stage of life, partnering with Kaiser Hoffman will leverage the expertise and resources you need to realize them.