Aussie dollar: Vendors cut prices, disties keep watch

Aussie dollar: Vendors cut prices, disties keep watch

Vendors including Microsoft and Dell last week made a raft of price cuts after the continuing strong performance of the Australian dollar.

However, the local currency took a sudden tumble during the week, with the dollar sliding below $US0.64 for the first time in three months.

Microsoft has cut around 30 per cent off its retail XP Standard and Professional boxes, and about 38 per cent on standalone Office applications.

Dell has dropped the pricing on its OptiPlex desktop PCs by up to $270, or 20 per cent, while some configurations of its Precision workstation will be reduced by up to $280. It has reduced its PowerEdge servers by $400.

The direct vendor attributed its price cuts, effective from September 1, to the strong dollar as well as falling component prices.

Microsoft had been making global price drops on Office XP “over the past couple of months” and was now rolling it out in Australia, office product manager, Tony Wilkinson, said. “The main reason we delayed it was to synch with the overall adjustments with the Australian dollar change.”

While vendor-set pricing from the likes of Microsoft and Dell tends to flow on to consumers in the form of an adjusted RRP, pricing within the channel may feel the effect of the currency fluctuation as well.

While the dollar was back up at 64c on Friday, distributors will watch its performance carefully after last week’s wobble, to determine whether price adjustments are in order, especially on product bought in US dollars.

For more on this story, see this week's issue of ARN.

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