PC buyers to feel pressure of low dollar

By MICHAEL FOREMAN

Microsoft and Hewlett-Packard have become the latest information technology companies to pass on the effects of a weak New Zealand dollar to their customers.

From November 1, Microsoft will increase the price of its commercial software - including business applications, operating systems, server software and development tools - by between 10 and 18 per cent.

The company said further increases affecting its consumer, reference and games products were in the pipeline, but would be delayed until after Christmas.

"We have done what we can to hold prices constant over the past two years, despite significant downward currency movements," said Microsoft's national marketing manager, Ross Peat.

"However, the continuing fall of our dollar against the US currency means we have had to make the change."

Mr Peat said Microsoft would continue to monitor the exchange rate.

He promised that any currency appreciation would also be reflected in the company's prices as soon as was practical.

Meanwhile, on Monday, Hewlett-Packard increased its listed prices on a wide range of products from 5 to 10 per cent.

"The falling exchange rate has pushed all prices up, but as some products were due for a price cut they will be staying at the same level," Hewlett-Packard spokeswoman Joanna Burgess said.

She said high stock levels held by dealers would mean the price changes on Pavillion home PCs and approximately half of the company's range of scanners and inkjet printers would not hit customers until the end of the month.

But the price increase of business PCs of up to 10 per cent would probably be passed on immediately.

The prices of Hewlett-Packard's LaserJet laser printers are unchanged.

Last month, Compaq Computer blamed the weak dollar for price rises of up to 12 per cent, affecting its range of Intel-based servers, storage products and commercial PCs.