PC makers reportedly face increase in Windows licensing costs
Microsoft has reportedly increased Windows licensing costs for PC manufacturers, adding another expense for an industry already dealing with higher memory, storage and processor prices. Taiwanese Economic Daily News reports that OEM licensing fees have increased by an average of 7% to 10% since July.
According to a PC brand executive cited by the publication, Microsoft adjusts Windows OEM licensing prices every year, but previous increases were typically lower.
Microsoft increases licensing fees for Windows OEMs (device manufacturers) every year. In the past, licensing fees mostly increased by single digits each year, but starting in July this year, the average increase has reached 7% to 10%, which is a significant increase compared to previous years.
— UDN (translation)
PC makers are already reflecting the new licensing costs in product pricing, according to the report. However, Windows is only one of several components becoming more expensive. Memory, SSD and CPU costs have also increased, with the publication estimating that finished PC prices in Taiwan could rise by another 5% during the third quarter.
Framework already confirmed higher Windows license costs
The Windows licensing increase is not entirely new information. Framework mentioned the same issue in its July 22 pricing update, weeks before the Taiwanese report appeared. The laptop maker said pricing for new Framework Laptop 13 Pro orders reflected an upcoming Intel Core Ultra Series 3 processor price increase, higher Windows license costs and increases affecting memory, storage and other silicon components. Framework did not disclose how much its Windows licensing costs had increased.
The reported 7% to 10% increase applies to licenses purchased by OEMs for PCs shipped with Windows. It does not mean PC prices will automatically rise by the same percentage. Windows licensing represents only one part of the total system cost, but it is another increase manufacturers now have to absorb or pass on to customers.
Sources: UDN
