Microsoft's Windows Licensing Fee Hike Slams Brakes on PC Prices
Microsoft has increased its Windows OEM licensing fees by 7-10%, according to reports from United Daily News. This move is expected to push PC prices up another 5% in the third quarter, adding to the already significant price hikes due to component shortages.
The price increases come after a year of rising costs for key components such as memory, SSDs, and CPUs. Microsoft's licensing fees are based on CPU specs, with higher-end CPUs incurring more expensive fees. PC OEMs have been increasing prices to reflect these changes, but the latest fee hike poses a significant threat as the market enters a sluggish state.
ASUS and ACER have already notified customers of further price hikes this quarter, with single-digit percentage increases expected. The average price bump for ASUS's products has been 30% so far, compared to Q4 2022.