Microsoft hikes Windows OEM licensing fees — PCs could get even more expensive

Microsoft has reportedly raised Windows licensing fees for PC manufacturers by significantly more than in previous years. As a result, the cost of new computers could rise even further. According to Taiwanese outlet United Daily News (UDN), some original equipment manufacturers (OEMs) have seen Windows license prices increase by 7 % to 10 % since July.

The report cites a PC industry executive who said Microsoft traditionally raises Windows OEM licensing fees by only a few percentage points each year. This year's increase is therefore considerably larger than usual and is already beginning to affect laptop pricing, according to industry sources.

Microsoft charges different licensing fees depending on the hardware manufacturer and product category, meaning the exact increase varies between OEMs. However, since Windows licensing costs are typically reflected in PC retail prices, consumers are likely to bear at least part of the increase

The reported price hike comes at a difficult time for the PC industry, which is already struggling with higher manufacturing costs driven by an ongoing memory shortage. As a result, notebook and desktop prices have risen sharply over the past year, with analysts warning that component costs could continue to rise.

The higher licensing fees apply only to manufacturers that preinstall Windows on new computers. Retail pricing for standalone Windows licenses remains unchanged, with Windows 11 Home priced at $99 and Windows 11 Pro at $199.

Windows Central contacted Microsoft for comment, but the company declined to comment on the report.