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Not a long time ago I wrote an article on this website about the future of laptop and desktop sales figures and the future of the computers. Since then I’ve noticed a new trend in the UK. The computers have actually become more expensive.

Everyone have probably seen full page Dell advertisements selling desktops and laptops, with some special discounts in them. These ads appear more often in the run-up to big holidays or during the discount seasons. The beginning of February is neither and I was firstly mildly surprised to see the ad but then have got very surpreised when looked at the prices. They have substantially gone up. The desktop with the old and tired Intel Pentium processor would now cost as a computer with Intel Pentium Core 2 Duo processor. And the price of the desktop with Pentium Core 2 Quad  - the top processor on the domestic market at the moment - has shot up by about 200 pounds!

The explanation for this is the currency exchange rate between the pound and the dollar. The prices of electronic goods are always set in dollars on the world markets. For example have a look at any Chinese or Asian website dedicated to the computers and electronic devices. All the prices are shown there in US dollars. In the UK, we have enjoyed a long period of high pound when global prices have been falling, which was making the goods we were buying even cheaper. The quick drop of the pound was like a bucket of the cold water overturned on our heads.

Obviously, Dell cannot and will not be able to buy the components for the computers at last year pound prices. Obviously, they cannot pay their workforce last year salaries. The pound sterling has dropped against all major world currencies including euro, dollar, yen and even Chinese yuan. If Dell’s factories are in China, they will need to spend more pounds to pay their workers to make the computers for the UK market.

This is a true reality of life. And the trend of imported goods getting more and more expensive is going to continue affecting not only computers and electronics but also clothing, food (it’s already happening everywhere), services, transportation etc.

The only hope is that this downward pound trend is a temporary occurrence and as British economy start to recover, so will the pound sterling. Within the several following years I don’t expect it to recover fully to the pre-crisis levels against dollar and euro but I do expect some substantial recovery. This will eventually ease the inflation pressure caused by the low pound and bring the cost of laptops and desktops down. So in the meantime I wouldn’t advise to buy a new computer, at least from Dell, but would advise to wait a couple of years. Do it if you can but if you can’t, just do some shopping around and see - maybe someone’s still offering  laptops and desktops at high pound prices.