PC manufacturers and OEMs are going to increase the prices of their Windows-based systems as Microsoft has increased the licensing fees.
You must have seen and read countless articles on the ongoing PC component shortages, which have raised prices across the segment. Memory , Storage , Processors , Graphics Cards , and even Motherboards aren't safe from shortages, resulting in users paying much higher prices than they were a year ago.
We have covered how the ongoing shortages, which primarily stem from increased AI demand, have devastated the PC segment , but now, higher software fees are resulting in even more price hikes across OEMs.
In a report by United Daily News , it is reported that Microsoft is raising the licensing fees for its Windows OEM operating systems, which will further increase pressure on PC manufacturers and are expected to raise prices by another 5% in the third quarter.
PC brands are facing increasing operational challenges this year. Following price increases in key components such as memory, SSDs, and CPUs since last year, Microsoft recently raised licensing fees for Windows OEM operating systems, putting PC brands under pressure from both hardware and software price hikes. PC end-product prices are expected to rise by another 5% in the third quarter.
United Daily News
Talking to a PC OEM, it was revealed that Microsoft has increased licensing fees annually, but this year is different because, instead of increasing them by single digits, starting this July, the average fees were increased by 7-10%.
It is mentioned that the licensing fees range based on the CPU spec. So each CPU tier will have a higher price. The higher-end the CPU, the more expensive the fees are going to be. Most PC OEMs have already increased the prices to reflect these changes, but these were hidden in the rising PC component prices. But moving forward, such high rises in fees pose a significant threat for OEMs as the market has entered a sluggish state and there's no recovery in sight since prices continue to increase.
Taiwan-based ASUS and ACER have already notified that their products will see a further price hike this quarter, which will range in the single-digit mark. The average price bump for ASUS's products has been 30% so far, compared to Q4 2025.
Current reports highlight a significant drop in PC shipments , with major vendors seeing a decline. While prices continue to increase, there is higher revenue to benefit from, but moving forward, if this continues, no one would even bother buying a new PC since the pricing trajectory has gotten way out of control.
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