Microsoft's Windows Licensing Fees Soar 7-10%, Pushing PC Prices Higher

Microsoft has increased its Windows OEM licensing fees by 7-10%, prompting PC manufacturers to raise their prices by another 5% in the third quarter. This latest hike comes on top of previous price increases due to component shortages, which have devastated the PC segment.

The rising software costs will put additional pressure on PC brands, which are already facing operational challenges this year. Microsoft's licensing fees range based on CPU spec, with higher-end CPUs incurring more expensive fees.

Major PC OEMs such as ASUS and ACER have notified their customers that they will see a further price hike this quarter, with prices expected to increase by single-digit percentages. The average price bump for ASUS's products has been 30% so far this year compared to Q4 2025.