Microsoft hikes business pricing, citing weak dollar

It's not just oil and groceries - Microsoft says the falling Kiwi dollar has forced it to bump up the prices of its business products by between 10% and 18%.

It's not just oil and groceries - Microsoft says the falling Kiwi dollar has forced it to bump up the price of its business products.

In a statement yesterday Microsoft said the the continuing fall of the New Zealand currency against the US dollar, "reaching historic lows, has meant that the pricing differential for its products is no longer sustainable."

The company is to increase the price of its business application software, operating systems, server software and development tools by between 10% and 18% from November 1, 2000.

Consumers, however, get a break. Microsoft national marketing manager, Ross Peat said that to limit the impact on consumers during the Christmas season, Microsoft will continue to hold prices for existing consumer, reference and games products

purchased through retail outlets until 1 January 2001.

Peat said customers with fixed Enterprise Agreements will not be affected by the change in business pricing.

"We have done what we can to hold prices constant over the past two years, despite significant downward currency movements," said Peat. "However, the continuing fall of our dollar against the US currency means we have had to make the change. We will continue to monitor the exchange rate and will reflect any currency appreciation in our prices as soon as is practical."

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