Microsoft has increased Windows OEM licensing prices by 7 to 10 percent. Rising hardware costs are affecting computer prices.
Another hardware cost has been added to affect computer prices. Microsoft has increased the Windows OEM license prices used by PC manufacturers by 7 to 10 percent as of July 2026.
With the rise in memory, SSD, and processor costs, computer prices are expected to increase by approximately 5 percent in the third quarter, especially in the Taiwanese market. This is a significant development that directly affects computer production costs on a global scale.
The period of increase in Windows OEM license fees
Microsoft systematically adjusts the Windows OEM license prices it receives from computer manufacturers every year. These increases, which mostly remained in single digits in previous years, have reached 7 to 10 percent as of July 2026.
This price differs from Windows licenses purchased from stores. This fee, paid by manufacturers to pre-install the Windows operating system on new computers, varies depending on the processor class of the device.
License costs are determined at different levels for computers with different processor classes such as Core i3, Core i5, and Core i7. While the operating system license cost increases in systems using higher-end processors, the reflection of this increase in device prices varies depending on the model.
The new license prices have started to be reflected in the product prices of PC manufacturers. However, the 7% to 10% increase on the Windows side does not mean that computers will directly increase in value by the same percentage. OEM license constitutes only a part of the total cost of a computer, and manufacturers’ pricing is shaped by other components.
Hardware Costs and Their Impact on the Market
The biggest cost increase for PC manufacturers is on the hardware side. High demand for AI servers since the second half of 2025 has tightened the supply of essential components such as memory, SSDs, and processors.
The sharp rise in memory prices, in particular, accounts for a large part of the increase in the production cost of new computers. In Taiwan, ASUS and Acer announced that computer prices will increase again in the third quarter by approximately 5 percent, or single-digit percentages.
Prices of some ASUS computers in Taiwan had already increased cumulatively by nearly 30 percent as of May 2026 compared to the fourth quarter of 2025. The company anticipates a single-digit increase in prices in the third quarter as well.
This 5 percent increase expectation is not a common increase rate announced for all computers worldwide. Although the data covers the Taiwanese PC market, rising Windows OEM licensing costs and the increase in memory, SSD, and processor prices are affecting global PC manufacturers.
The global PC market is also beginning to feel the impact of rising costs. In the second quarter of 2026, worldwide PC shipments fell by 4 percent year-on-year to approximately 65 million units.
Thus, the growth series that began in the first quarter of 2025 and continued for five quarters came to an end. The Windows transition cycle and enterprise upgrades for AI-enabled computers continue to support demand.
High memory and other component costs are particularly putting pressure on the price-sensitive consumer segment. In response to rising costs, manufacturers are raising prices, reducing entry-level configurations, and promoting models with higher profit margins.
How do you think these cost increases will affect your computer purchasing decisions?