Microsoft Hikes Windows License Fees for OEMs by Up to 10%

If it wasn't enough that memory, storage, and CPU shortages are driving up the prices of PCs, Microsoft is now imposing a price increase on OEM PC makers for their Windows licenses. According to Taiwanese UDN, Microsoft has notified OEM PC makers that Windows licensing fees are going up by 7% to 10%. One of the PC vendors noted that Microsoft typically increases its Windows license fees every year, but only by a low, single-digit percentage. However, this time the increase goes up to 10%, making it one of the most significant increases OEMs have experienced. We don't know the exact dollar amount, as Microsoft works with PC OEMs individually to set prices.

PC OEMs likely receive better prices based on volume, with large makers such as Dell, HP, ASUS, Acer, and others getting much better deals than smaller OEMs with fewer shipments. Thus, the 7-10% increase depends on the PC OEM's volume and individual deals with Microsoft. However, no one is spared from these increases as the Redmond-based giant seeks to extract a few more percentage points from the world's most widely used PC operating system. The company is investing heavily in engineering efforts to remodel its Windows 11 operating system for a better user experience after years of updates that compromised it. Increasing the license fees for OEMs is one way to offset these efforts.