Vendors cut prices in face of high dollar

Sun Microsystems says an 8.2% reduction in its hardware and software prices is purely a response to the soaring New Zealand dollar.

Sun Microsystems says an 8.2% reduction in its hardware and software prices is purely a response to the soaring New Zealand dollar.

“We’re bringing parity back to the US dollar and evening out the exchange rate,” says Sun NZ manager Rod Severn.

Sun made two downward price movements last year for the same reason, he says. Sun has also lowered it prices in Australia by 7.5%.

While such cuts mean Sun resellers and distributors have to make up the shortfall, Severn says “it’s part of life”.

“There’s pressure on everyone and when your prices get out of whack, you do something to bring them back into line.”

There was an 8% gap to fill in the market, he says.

HP NZ spokesman Ken Erskine says his company has no current plans to change its prices, though it has made changes in response to the exchange rate and other factors in the past year.

“The supply and demand price, market activity and the exchange rate all go into the mix.”

IBM NZ reduced its software prices by 9% earlier this year, says spokesman Jeremy Seed.

“We sent a note to our business partners at the end of January, announcing that in early February we would be passing on savings of 9%.”

Seed wouldn’t comment on the reasons for the cut, but Computerworld believes it was also in response to the exchange rate.

IBM dropped the price of its Intel-based hardware products by 20% in January.

“That includes the xSeries, which includes blade servers,” says Seed.

Different products were reduced by different rates, but on average the reduction was 20%. While currency movements were the main reason, “it’s also a reflection of the fact we’ve increased our presence in that part of the market. There’s more stock out there.”

IBM’s non-Intel hardware, such as the iSeries and storage products, were also due for a reduction in late February.

Join the newsletter!

Error: Please check your email address.

Tags Zealand dollar

More about HPIBM AustraliaInteliSeriesSun Microsystems

Show Comments
[]