Prices jump 5%: Microsoft raises PC costs

Computer buyers are facing mounting pressure from various quarters this year, as the memory and chip price crisis is no longer the sole factor driving up the cost of a new PC.

According to a report published by a Taiwanese newspaper, Microsoft has quietly raised the Windows licensing fees paid by computer manufacturers, in an increase that appears larger than usual.

This decision could lead to an additional 5% rise in PC prices during the current quarter, at a time when the market is already grappling with higher costs for memory and processors due to increased demand linked to artificial intelligence, according to a report published by Digital Trends.

Worse for consumers is that this price increase will not necessarily be matched by additional specifications or features in the new devices.

According to an executive at one of the computer manufacturing companies, Microsoft has traditionally raised Windows licensing fees for OEMs annually, but these increases were usually modest, hovering in the low single-digit percentages.

However, the situation changed last July.

The new increase ranged between 7% and 10%, a jump significantly larger than the usual annual hikes.

Furthermore, the fees are not uniform across all devices; Microsoft determines the cost of the Windows license based on the processor class installed in the device.

Consequently, manufacturers pay more for a license for a device equipped with a high-end processor, such as a Core i7, than for one using a lower-tier processor like a Core i3 or Core i5.

Computer manufacturers state that most users have not yet noticed this specific increase, which is easily understandable given the substantial rise in prices for other hardware components.

Component prices, especially memory, have surged rapidly since the beginning of the year, making the additional cost of Windows licensing appear as just another part of the broader wave of price hikes.

Since last year, demand for memory, SSDs, and processors has risen significantly, with prices increasing in tandem.

In Taiwan, Asus and Acer have already confirmed a new round of price increases during the current quarter, of approximately 5%.

Asus provided a more striking figure, noting that some of its products are now being sold at prices roughly 30% higher than in the fourth quarter of last year.

These increases do nothing to help the PC market.

Counterpoint Research forecasts that global PC shipments will reach approximately 65 million units in the second quarter of 2026, a 4% decline year-on-year.

This would mark the first shipment decline since early 2025.

However, rising component costs and Windows licensing fees are working in the opposite direction, making new PCs more expensive at a time when consumers are becoming more price-sensitive.

Thus, the PC market finds itself facing a difficult equation: AI is driving component demand to record levels, rising memory and processor costs are pushing up device prices, and now the Windows licensing increase adds a new burden on the end consumer.