Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
Well what do you expect them to do? The pound is down almost 13% against the dollar. All the PC components are imported and I imagine all in USD. Should they just accept a 13% loss??? I've preordered a 480 after market card as I only expect prices to keep going up…
Indeed, the rest will follow once stocks get sold out.
they're not going to be the only one. As long as they lower the prices again if the exchange rate goes higher. Personally I think they'd just see a rise in the rate as a “bonus payment” though.
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
Blame the brexiters.
spolsh
they're not going to be the only one. As long as they lower the prices again if the exchange rate goes higher. Personally I think they'd just see a rise in the rate as a “bonus payment” though.
Depends on competitors, you paint a picture with only one person in it… If nobody else will lower prices why would DELL? They have very competitive pricing so all depends on other manufacturers.
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
I imagine you voted Leave based on the logic you have applied to this comment. Dell have to react to the currency fluctuations, their margin is likely to be between 5 and 10% so a 13% change in currency is very significant
outwar6010
Blame the brexiters.
Personally, I prefer to blame the scumbag parasitic currency traders in London, New York and the rest, playing at their casino economy producing nothing of worth.
I notice they weren't lowering prices as the exchange rate headed towards $1.50 though…
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
As the pound has fallen by more than 10%, you should instead be thanking Dell for limiting the price rise to only 10% and taking a hit on the difference.
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
If you really are based in the UK then you would have heard about the EU referendum and how a Brexit would affect our economy. Perhaps you'll get it when the price of food rises, your energy bill increases, etc. On the other hand, maybe not and you'll end up blaming the immigrants while you reminisce during the good old days of the empire!
PS did you get expert advice on economics from Michael Gove?
No, screw the Brexiter morons.
Bagpuss
Personally, I prefer to blame the scumbag parasitic currency traders in London, New York and the rest, playing at their casino economy producing nothing of worth.
I have to agree here, we haven't even triggered Article 50, nothing has in fact changed yet so why on earth the markets have changed so dramatically seems concocted to me.
Yes, because everyone who voted leave is a moron….?
Or… how about you go shove that sentiment where the sun doesn't shine and accept that you lost.
QQQQQQQ
Top_gun
If you really are based in the UK then you would have heard about the EU referendum and how a Brexit would affect our economy. Perhaps you'll get it when the price of food rises, your energy bill increases, etc. On the other hand, maybe not and you'll end up blaming the immigrants while you reminisce during the good old days of the empire!
PS did you get expert advice on economics from Michael Gove?
Current currency variations aren't about economics. They're about a mix of currency speculators, dealers correcting incorrect pre-vote positions that bet on a Remain victory, and lost, and on a degree of nervousness based on uncertainty while we don't even have a PM prepared to commut to a negotiating line.
An element of volatility was obvious. How much, over what period and in what arenas remain to be seen. Also, currency weakening means impirt costs go up, but our exports cost less to foreign buyers, implying a predictable boost to exports, and a boost to the UK economy, industrial output and even jobs. Again, the scale and timetable are harder to predict.
What the overall balance is between the positive and negative impacts are of a seakening currency are remains to be seen but lots of economists believed, pre-referendum, that the pound was overvalued due to the relative strength of the Uk economy, especially among the G7.
Pound will bounce back. Insecurity causes these temporary dips. Wish we could follow the UK but sadly the Netherlands has already sunk too far into the quicksand that is the EU.
MonkeyL
No, screw the Brexiter morons.
wayn3h
Yes, because everyone who voted leave is a moron….?
Or… how about you go shove that sentiment where the sun doesn't shine and accept that you lost.
QQQQQQQ
Neither of those comments are particularly helpful, and not in the HEXUS spirit, although with passions running high, I understand the sentiment behind them. :)
One might say the same about the post that triggered this discussion, although as it was aimed at a Corparate decision, and not at an individual it falls just on the acceptable side of a very fine line (IMNSHO)
However there are existing threads where these issues are being discussed, so you may like to contribute there.
Egla
Pound will bounce back. Insecurity causes these temporary dips. Wish we could follow the UK but sadly the Netherlands has already sunk too far into the quicksand that is the EU.
Well, you are in the Eurozone which complicates matters, but if media reports are correct, there is a groundswell of discontent in several European countries.
The only 2 things I thought when I saw this was that
1) it was a bit of a sharp reaction as the exchange rate hasn't really settled yet - I know they need to do something at some point but a big jump in prices like that is going to upset people (see above).
and 2)
You can be pretty sure those prices won't come back down if/when the £ rallies
peterb
Well, you are in the Eurozone which complicates matters, but if media reports are correct, there is a groundswell of discontent in several European countries.
and they are all sitting back and watching how much of a mess the UK turns out to be post brexit. And so far the signs are not good!
it's also a bit rich seeing that I never saw Dell reducing prices when the pound was strong, and quite often comparing the same spec on the Dell US vs UK site saw a huge difference in price (not in the UK's favour) and that is in the ex VAT figure, nevermind the final purchase price.
I was seriously weighing up buying a laptop. Won't bother now.
Of course they do, just like every other company will…. and I'm sure they'll reduce said prices as the pound increases in value again, oh who am I kidding that's just not going to happen is it.
Considering UK prices are usually inflated by 10-15% more than USA ones, its a bit rich.
Just compare dell USA prices to UK and u will see.
Irishgamer01
Considering UK prices are usually inflated by 10-15% more than USA ones, its a bit rich.
Just compare dell USA prices to UK and u will see.
My thoughts as well actually.
outwar6010
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
Blame the brexiters.
Far better to blame the jittery, superstitious traders and the negative news, which then has a knock-on depreciating effect on currency and the market overall.
The real problem is that no-one's looking at the situation particularly objectively or long-term. A lot of people feel hurt and a lot of business decisions are being made on “gut feelings” rather than stone-cold facts.
That said, I feel that the strength of the UK ecomony has been over-exagerrated for a while. In some ways, we've been in a belief bubble that was bound to burst eventually. In some ways, this will just force the UK economy to adapt or die, so it will adapt. Unfortunately it won't do so overnight.
It's a real shame though. Hope the most-pessimistic forecasts don't come true, but I don't believe the $1.20:£1 forecast to be impossible unfortunately. It's just sad that will import and tax, that means we'll see an even greater lack of price parity. Before this, it was joked that there was a 1:1 exchange rate, as often a $200 card would cost £200, but now I'm seeing $230 cards costing £230-250, so it's probably going to get worse before it gets better.
So yeah. Blame the currency traders as they're the ones who are really affecting the value of the pound.
Irishgamer01
Considering UK prices are usually inflated by 10-15% more than USA ones, its a bit rich.
Just compare dell USA prices to UK and u will see.
If we take Dell's most well known model, the XPS 13, then the 6200U/8GB/256GB/FHD model is currently £880 on the UK website and $1149 on the US website. At today's exchange rate that comes out at £884. The UK model also includes two years of security software instead of one.
US prices are also often quoted excluding tax as it varies by state so if it's around 20% lower then that's usually the reason.
Wow, 10pc?
MiSJAH
Wow, 10pc?
Crikey, that XPS seems to ruin the AlienWare in every way, for a third of the price. It actually looks like a very good deal, is that before the Dell price hike?
The Alienware does come with Steam pre-installed and a mysterious additional “Software”, though.
Edit: pff pricing error - I guess it's the only way Dell would get me to buy one of their laptops ;)
It's a pricing error. But thought it was funnily appropriate for this thread.
Sent from my iPhone using Tapatalk
The pound at a 31 year low against the dollar is not there by accident. We saw the pound dropping as Brexit appeared to be winning the referendum, then gained after polls suggested the remainers could win, and the pound tanked on the night of the Brexit win. Obviously, the markets have no confidence Brexit, it seems the whole world is against Brexit unless you are ISISs, North Korean or Russian. Not surprising as Brexit has no Plan A much less Plan B.
There is now talk of the pound having parity with the dollar. It would not surprise me if there are further price increases for Dell products.
wayn3h
Yes, because everyone who voted leave is a moron….?
Or… how about you go shove that sentiment where the sun doesn't shine and accept that you lost.
So if the economy goes up the swanny and the country falls to pieces, what will the Brexiters have “won”, exactly?
Sounds more like everyone loses… apart from Dell, of course.
How low would the Pound have to drop before companies stop selling here, on the basis that too few people can afford their stuff?
Ttaskmaster
So if the economy goes up the swanny and the country falls to pieces, what will the Brexiters have “won”, exactly?
Sounds more like everyone loses… apart from Dell, of course.
How low would the Pound have to drop before companies stop selling here, on the basis that too few people can afford their stuff?
At that point no doubt it will then be a “Conspiracy” against them
Bagpuss
Personally, I prefer to blame the scumbag parasitic currency traders in London, New York and the rest, playing at their casino economy producing nothing of worth.
AGTDenton
I have to agree here, we haven't even triggered Article 50, nothing has in fact changed yet so why on earth the markets have changed so dramatically seems concocted to me.
By the comments it's kind of clear you are incredibly ignorant of what you are talking about. So let me spell this out in a few ways for you to understand.
When we print money or use
Quantitative Easing we devalue the pound.
When people are worried about investmenting the UK or that the Pound will fall (which it obviously will just due to the uncertainty of Brexit) they want to get their sterling out, that means finding a buyer, which is getting harder. But those ‘scumbag parasitic currency traders’ have been letting people do just that. Hence the fall.
This is possibly worse because we haven't triggered article 50 just yet, no one knows what will happen, almost every single economist agrees it will be bad, the debate is centered on how bad it will be. Having more ambiguity is spoking people, the phrase “risk off” I have heard twice so far, as people remove investment that is risky from the UK.
Hence why our PMI was depressed leading up to Brexit, this was bad enough, but now I think most people are expecting the next month's figures to be worse. I wouldn't be surprised if it was 35.
The only people to blame for this mess are the vote leave people. They had no plan, this has created more damage, why we've continued to sink a week after the vote announcement. As those who championed the vote resign because they've no plan at all, we are left in a bad place. Even small businesses such as mine can not begin to guess if we will be able to legally operate from London inside the EU in 2018, we've an obligation to our investors so have to shift our focus to USA/APAC.
TLDR: You are blaming the water for washing away the house built on the sandy beach shore.
H'mm how can the exiters have a plan when they don't know how negotiations will go with the EU…what about this plan A:- negotiate out of the EU and while this is taking place put feelers out for world trade… :juggle: am I clever as no one else has thought of it ;)
Dell are only one of many who will have to revise their UK pricing. While the 10% bump is obviously not welcome, it's reasonable, but I'm going to have to hold off replacing my 8 year old laptop (a Dell, it has lasted far longer than I thought it would!). Practically all the tech we buy in the UK is manufactured abroad, so there isn't a way to “buy British” to avoid this. The government can't cut import duties to help, as they're already zero-rated on computers.
I don't expect the falling pound to help UK goods exports much - it certainly didn't when the pound fell significantly in 2008. Even if it does, UK manufacturing shrank considerably a long time ago and so any improvement will diluted massively when seeing the effect on the overall economy. On the other hand, perhaps we should get to work using all those Dells to produce more games - at least we're still good at that, right?
excalibur2
H'mm how can the exiters have a plan when they don't know how negotiations will go with the EU…what about this plan A:- negotiate out of the EU and while this is taking place put feelers out for world trade… :juggle: am I clever as no one else has thought of it ;)
Do some pre-negotiations and talk to other EU leaders as Nicola Sturgeon has been doing for Scotland? Probably would have put us in a stronger place that just saying how bad the EU was a promising a load of things that wouldn't and indeed couldn't happen.
MaddogPepper
I imagine you voted Leave based on the logic you have applied to this comment. Dell have to react to the currency fluctuations, their margin is likely to be between 5 and 10% so a 13% change in currency is very significant
Wrong. Sorry. I care not for politics.
Will/would Dell lower their prices if the pound rose by that much? Most probably not… Hence the comment.
Do people still buy crappy DELL PC's?
Dell is not the only one. Samsung is one company I have noticed also hiking prices.
To be expected really when the pound tanks like that.
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
The UK referendum on the EU has proven that the majority of England & Wales to be ignorant if not retarded. That is the group to blame, not Dell.
Wrinkly
The UK referendum on the EU has proven that the majority of England & Wales to be ignorant if not retarded. That is the group to blame, not Dell.
……and people in NI and Scotland are more intelligent?
All the #### is made in Asia anyway shouldn't we be more worried about pound vs yuan etc.
Bane2087
All the #### is made in Asia anyway shouldn't we be more worried about pound vs yuan etc.
OK.
Would you believe parts have suddenly gotten a bunch more expensive in GBP?
cheesemp
excalibur1814
Dear Dell,
Screw you.
Thanks,
Someone based in the U.K.
Well what do you expect them to do? The pound is down almost 13% against the dollar. All the PC components are imported and I imagine all in USD. Should they just accept a 13% loss??? I've preordered a 480 after market card as I only expect prices to keep going up…
they never adjust it the other way when the pound is doing well
Darth Sidious;3673078
they never adjust it the other way when the pound is doing well
If they want to compete then they do, but when was the last time you saw the currency suddenly change direction by 13% in a very short period of time? I work for a VAR and we see weekly price fluctuations all the time across the board. Sadly this is what happens when your currency tanks.
Still, good for the exporters eh?
Splash
If they want to compete then they do, but when was the last time you saw the currency suddenly change direction by 13% in a very short period of time? I work for a VAR and we see weekly price fluctuations all the time across the board. Sadly this is what happens when your currency tanks.
Still, good for the exporters eh?
Not very useful when you have little industry left :p Still I bet the car manufacturers won't complain as long as they keep tariff free access to the single market…
What Splash said really.
It's hard to find like-for-like comparison. The pound crashed to a 31 year low in a matter of days. If the currency was expected to shortly recover, I expect most companies wouldn't bother risking the ill-will generated by a sharp-ish price adjustment. But that is not what the forecasts are saying. At the earliest, we need to wait until our leadership stop running around like headless chicken (in reference to what is going on in both the conservative and labour party). And if A.50 is triggered, it's going to get even more “interesting”. We reap what the “majority” sow.
Also, don't expect Dell to be the last company to raise their prices. Worry more about the 40% of food the UK has to import.
I have to admit, I'm always puzzled by this “good for exporters” line. It's like there's this assumption that British goods being cheaper somehow means the people who buy those goods will suddenly increase their imports dramatically.
I see 2 issues with that. Firstly, if someone is already importing something from the UK, that's likely to be because our goods are already price competitive in the market. If we were already amongst the cheapest options, our exports being cheaper isn't going to help much because it won't bring in new business. Secondly, our exports will only be significantly cheaper for goods that are entirely sourced from within the UK. Any part of the manufacturing process, any running overhead, any external service, sourced from outside the UK will be going up in price, which means we'll have to charge more for those exported goods and services.
The only way exporters really benefit is if the shift in currency makes our goods cheap enough to appeal to new customers. I'm sure that's happened for some goods & services, but I imagine it's insufficiently common to make a significant difference overall. And even if it is some benefit to exporting companies, it doesn't stop al lof their employees being hit in the wallet by the rising prices of food and consumer goods.
In other words, it's almost certainly only a benefit to a relative small group of people … can we guess which small group? :rolleyes:
Always good for politics to rear it's ugly head. However, truth be told, I'm expecting the pound to settle down in the $1.20 mark this year. Good and bad, but for most of us on this forum pretty bad as most of the stuff we love is priced in dollars. Currency as pointed out is very susceptible to how the traders perceive an economy is doing and will do in the short term future which bodes well for how the “experts” believe the referendum will make us appear to investors. I expect a healthy price rise from amy suppliers, which *should* help our interest rates which is probably a good thing. So all in all, nobody really knows lol
Dell increases UK pricing by 10 per cent due to GBP decline
The phrase “First World Problem” springs to mind.
Hmm, but Japan's economy for instance is pretty heavily tied to it's export. When the yen strengthens, export reliant Japanese companies often revise their profit forecast downwards. I suppose that when the yen is cheaper foreign retailers will place a bigger order of Nintendo DS expecting them to sell anyway and netting them more profit or giving more leeway for seasonal discounts.
You're right that the profit probably won't be passed down to the employees (then again Japan does have a culture of seasonal bonus which is affected by how well the company is doing so there is probably some influence) and a healthy corporation will at least be able to keep / increase it's current workforce as opposed to shedding workforce which results in higher unemployments.
The problem is that the UK is not in the best position to compete on exports (other than finance / service).
TooNice
… When the yen strengthens, export reliant Japanese companies often revise their profit forecast downwards. ….
To be fair, while the referendum hit the pound:yen exchange, the dollar:yen exchange didn't really feel it - there's a blip around the referendum* but it quickly levels back to the expected position if you follow the overall trajectory. The yen:dollar exchange rate ids pretty much exactly where you'd expect if you extrapolate the trajectory from early June to now.
That's not true when you compare the pound - it doesn't recover from that blip at the referendum, and the general trend continues but from a new, weaker position than the overall trajectory would predict. So even if the pound was weakening naturally (and that's debatable given that all the recent inflections tie in with shifts in the referendum debate/polling) it's now a lot lower than you would expect given the trajectory up to early June.
In reference to my last post, it seems that some analysts agree with my reading of the “good for exports” line - interesting article in the FT here:
https://next.ft.com/content/9c746d04-4456-11e6-9b66-0712b3873ae1Economics says trade deficits fall if UK consumers switch rapidly to domestic goods and services from their foreign equivalents and if foreigners buy British. But in a study of the 2007-08 depreciation, the BoE found the effects of this were much smaller than in the 1990s because British households kept buying cars made in Germany and other imported goods even though they were more expensive, while the volume of British service exports did not respond rapidly to becoming cheaper in global markets.
and
David Miles, a former MPC member, told MPs soon after the referendum: “I am not terribly optimistic that, if sterling now stays at the current level, we should expect a marked increase in exports from the UK and a significant reduction in the current account deficit”.
In other words, expect more of the same for the foreseeable future…
* the refererendum week is an interesting one that's reflected in pretty much every exchange that I've looked at, regardless of their connection to the UK (e.g. even the Yen:Rupee exchange shows it). It's characterised by one currency strengthing against an overall weakening trend, before crashing horribly as the result is announced. I assume the reason it's so pervasive is that it's based on reference to the reserve currencies.
OilSheikh
Do people still buy crappy DELL PC's?
I'll bite, as maybe this was missed or maybe most have stopped feeding…
You've clearly never worked in a proper enterprise role.
Yes like all manufacturers some of the lower end offerings are a bit cheap and nasty, the rest of the range can be fantastic.
Often very good panels and LCD offerings, certainly as far as a price to performance ratio go. Not to mention great products like the XPS 13 range.
Guy
I'll bite, as maybe this was missed or maybe most have stopped feeding…
You've clearly never worked in a proper enterprise role.
Yes like all manufacturers some of the lower end offerings are a bit cheap and nasty, the rest of the range can be fantastic.
Often very good panels and LCD offerings, certainly as far as a price to performance ratio go. Not to mention great products like the XPS 13 range.
I saw it, but for the reasons you gave, and the fact it was completely off topic, I ignored it - but they are reliable workhorses in an office environment, with a pretty good bang for buck (although not quite such a good bang for pound at the moment).
Nowadays I can only see his posts when someone else quotes them. Looks like I will be keeping it that way :)
Enterprise and education (I've seen many schools and university run Dell) aside, their laptops have generally been well-priced for their target market (not including Alienware).
Guy
I'll bite, as maybe this was missed or maybe most have stopped feeding…
You've clearly never worked in a proper enterprise role.
Yes like all manufacturers some of the lower end offerings are a bit cheap and nasty, the rest of the range can be fantastic.
Often very good panels and LCD offerings, certainly as far as a price to performance ratio go. Not to mention great products like the XPS 13 range.
I have a UP2516D and it is a fantastic monitor.
Well someone mentioned if food prices go up….then we can always be more selective and eat less and maybe we wont continue to be nation of fatties. Anyway I thought the EU paid some farmers not to grow certain crops because of creating food mountains, well that would change as you can see fields unused.
Let's see if the average Brits can deal with Japan sized portions ;)
Won't complain about a leaner Britain, yet I suspect that old habits die hard.
Guy
You've clearly never worked in a proper enterprise role.
Yes like all manufacturers some of the lower end offerings are a bit cheap and nasty, the rest of the range can be fantastic.
But buying Dell as a consumer is not like dealing with Dell as an enterprise customer.
The enterprise stuff is pretty good, very reliable (apart from hard disc failures, thankfully SSD is taking over), and their support is super.
Wouldn't have one at home though.
Splash
Still, good for the exporters eh?
We are a net importer. With the exception of Scotch Whisky can anyone think of anything we routinely export more than we buy in? (and UKIP vitriol towards the EU does not count).
EndlessWaves
If we take Dell's most well known model, the XPS 13, then the 6200U/8GB/256GB/FHD model is currently £880 on the UK website and $1149 on the US website. At today's exchange rate that comes out at £884. The UK model also includes two years of security software instead of one.
US prices are also often quoted excluding tax as it varies by state so if it's around 20% lower then that's usually the reason.
I was told that US sales tax is only valid if the etailer is in the same state as the shipping and billing address. If you order inter-state sales tax does not apply. Go figure! (is this true?)
excalibur2
Well someone mentioned if food prices go up….then we can always be more selective and eat less and maybe we wont continue to be nation of fatties. Anyway I thought the EU paid some farmers not to grow certain crops because of creating food mountains, well that would change as you can see fields unused.
you mean those fallow fields resting as part of a managed crop-rotation cycle? Or the ones we've built housing all over?
excalibur2
Well someone mentioned if food prices go up….then we can always be more selective and eat less and maybe we wont continue to be nation of fatties. Anyway I thought the EU paid some farmers not to grow certain crops because of creating food mountains, well that would change as you can see fields unused.
Sadly the inverse is likely to happen - if food is expensive then people are more likely to head to cheap, highly processed and long-shelf life type stuff instead of going for fresh/sustainably grown produce. Lack of wider oversight as a bad thing as well - we should be working with our geographical neighbours to produce the right food in the right places.
OilSheikh
Do people still buy crappy DELL PC's?
My thoughts exactly, they penetrate the enterprise environments mainly. So how will if effect me…. well it won't affect me at all. The only thing this serves to potential business customers that were on the fence while buying PC/Servers etc, will now look for a cheaper alternative.
kalniel
Sadly the inverse is likely to happen - if food is expensive then people are more likely to head to cheap, highly processed and long-shelf life type stuff instead of going for fresh/sustainably grown produce. Lack of wider oversight as a bad thing as well - we should be working with our geographical neighbours to produce the right food in the right places.
Well surely home produced food won't go up in price e.g. Cheese, butter, milk, eggs, bread (if we don't import the wheat) apples, chicken and so on….Oh wait due to the lower £ Norway might increase the price of gas and IIRC don't the French supply electricity at times, erm then there is petrol|diesel :)
realstock
My thoughts exactly, they penetrate the enterprise environments mainly. So how will if effect me…. well it won't affect me at all.
I guess if you have no dealings with any company that has an IT budget it won't, if cost in enterprise environments go up ultimately those costs get passed on to their customers.
excalibur2
Well surely home produced food won't go up in price e.g. Cheese, butter, milk, eggs, bread (if we don't import the wheat) apples, chicken and so on….Oh wait due to the lower £ Norway might increase the price of gas and IIRC don't the French supply electricity at times, erm then there is petrol|diesel :)
There was always a strong case for energy independence. A push for renewable energy and electric vehicles could be timely, and give the country exportable expertise.
Corky34
I guess if you have no dealings with any company that has an IT budget it won't, if cost in enterprise environments go up ultimately those costs get passed on to their customers.
And into employee pay rises as cost savings.
Corky34
I guess if you have no dealings with any company that has an IT budget it won't, if cost in enterprise environments go up ultimately those costs get passed on to their customers.
Luckily i don't deal with budgets or sales, any of our customers that use currently use Dell, go direct to Dell because we cannot compete with their prices as a partner, it has been like this for a while now.
All this means is that customers are likely to look for cheaper alternatives, which may push more business our way, although it won't be that profitable for the tin, but once they are on the phone we can up-sell other things.