Microsoft's Windows 11 License Fees Hike by 7-10%

The PC industry is bracing for another price hike as Microsoft's Windows 11 license fees have increased by an average of 7% to 10%. This sharp break from low single-digit annual increases in recent years will impact PC makers and users alike. The Economic Daily News reported that the fee increase varies by machine, with higher-spec machines carrying a higher license fee due to CPU tier pricing.

PC makers have already absorbed the increased costs and are passing them on to consumers. Framework, a modular laptop maker, signaled the price change on July 22, listing an increase in Windows license costs among reasons for new laptop prices going up. Digitimes reported that Windows pricing had climbed by roughly double digits on average.

The impact of the price hike will be felt most acutely by those planning to buy higher-spec machines with more powerful processors. Asus and Acer have indicated that finished PC prices in their home market will rise around 5% more this quarter, while an Asus general manager noted that some Taiwan pricing had already climbed nearly 30% by May compared with late 2022.

For those planning to migrate from Windows 10, the situation is even more challenging. Microsoft charges $61 per device for a first year of Windows 10 Extended Security Updates, and the price doubles each year after that for a maximum of three years. With memory costs already multiplying due to AI server demand, PC users may need to adjust their budgets accordingly.