According to a new report from Taiwanese publication United Daily News (UDC,) Microsoft is raising the cost of Windows license fees for hardware makers by a much higher amount than normal. According to the report, certain OEMs are seeing licensing price hikes of between 7% and 10%.
Usually, Microsoft raises Windows license fees for OEMs by a low digit percentage, making this 7% to 10% increase much more significant than normal. “A PC brand executive stated that 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,” UDC says.
Of course, the cost of the Windows license fee is usually (at least partially) passed onto the consumer buying a computer, and UDC claims that their source says laptop pricing is already being impacted by these recent license fee increases. Microsoft charges different OEMs their own fees for Windows, so the exact increase in cost will differ for each hardware maker.
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Regardless, with the ongoing memory component shortage, PCs have already seen astronomical price increases over the last year, with experts claiming that we haven’t yet seen the worst of it. With Microsoft raising prices higher than usual on Windows licenses, it feels like the Redmond giant is adding extra fuel to the fire.
Windows Central reached out to Microsoft for comment regarding this story, but the company declined to provide one.
To be clear, the Windows license fee price hikes only apply to OEMs building hardware that ships with Windows. The cost of buying a license for Windows 11 as a consumer remains unchanged, being $99 for Windows 11 Home and $199 for Windows 11 Pro.
The ongoing component crisis has made computing unaffordable for many people. PCs that used to target the $600-$800 price bracket now cost close to $1,000. And flagship Windows laptops that used to cost $1,200-1,500 are now closer to $2,000. Even Apple has been hit by the shortage, being forced to raise prices by hundreds of dollars across its Mac lineup. Microsoft’s own Surface line was hit especially hard, with the flagship Surface Pro and Surface Laptop being $400-$500 more expensive than the last-gen models.
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