Sun raises prices by 15 per cent

Sun is the latest in a long list of vendors to announce price hikes due to exchange rate fluctuations

Sun Microsystems has joined the list of vendors hit by the weak Australian dollar, announcing a price hike of 15 per cent on all products sold domestically.

In a statement, the vendor said it had been forced to introduce the price hike due to exchange rate fluctuations. The Australian dollar has dropped by 25 per cent to the US greenback and 30 per cent against the Japanese Yen in the past 8 months.

The new prices will be effective February 24, and partners will be provided with 30 days price protection from this date.

“When the rates return to a more normal level, Sun will adjust its prices accordingly,” the statement said.

itX general manager, Greg Newham, shrugged off any concerns the price hikes were going to impact the distributor's Sun business.

“Products that went up last time, mostly likely aren’t going up this time. It’s just a continuing revision of where their pricing is in the market,” he said.

Other vendors to introduce price changes recently include Cisco, which hiked up prices on its products by 18 per cent. In November, Acer announced a 25 per cent increase. Asus also announced an increase of up to 20 per cent on all new and existing products.