Effects of Brexit to Technology

Tech price rises blamed on Brexit 

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Starting on a higher notch today, we all know or some of us know that the World economy is again being tested by an unexpected shock following Britain's vote to exit the European Union. The Pound Sterling and stock markets globally even here in Kenya have been hammered seriously. On July 11th it was confirmed that ONEPLUS' latest flagship device, the OnePlus 3 will cost £329 up from its current price of £309 after Brexit decision just under a month after the country voted to leave the European Union and not only Oneplus but also Dell Computer Company has said they will charge higher prices for its computers.

Tech vendors don’t want to admit it but CIOs will need to return to their spending plan spreadsheets: hardware is going to get more expensive post-Brexit as sterling slides against the US dollar.

The UK currency fell 12 per cent on 24 June when the outcome of the EU referendum emerged, and this week the pound plunged to a 31 year low against the dollar, to $1.3342.

The rate at which price rises are seen will be staggered depending on the way a tech vendor operates. Cisco, for example, sells its kit in dollars, meaning that local resellers and wholesalers who buy directly from the networking giant need to carefully hedge currency.

“Cisco prices started to go up immediately on Friday [24 June],”
said one channel source.

Many vendors buy components in US dollars and will be under pressure to ensure margins are not hit when they sell to UK consumers or businesses. Those that run special bid pricing do so in dollars.

Experts predict further price rises.

The pound hit a fresh 31-year low against the dollar earlier on Wednesday - it has dropped more than 12% since the eve of the Brexit referendum result. Falls against some Asian currencies have been even larger.

Brexit will have a big impact on startups, privacy, telecoms and more

"On one level, it is simple: the Brexit vote means companies large and small are in for a period of uncertainty. And such times are bad for the kinds of speculative investments that are the lifeblood of startups".
The Wall Street Journal

If large Institutional investors become more risk averse and flee to safe, low-yielding investments, they'll devote less money to venture-capital firms. That would constrain the availability of capital for startups.