OnePlus 3 Price Hiked in UK Because Brexit
The pound is at a 31-year low against the dollar.
Britain’s withdrawal from the European Union, or Brexit, has claimed a high-profile tech victim. OnePlus, makers of a premium range of Android phones, has raised the price on its flagship model. Starting from July 11, the OnePlus 3 will be available at £329, £20 higher than its current price.
On Tuesday, the company announced that “small changes” would be made to the phone’s pricing structure, but eager customers can buy the phone at current price until next Monday. Accessories will not be affected.
OnePlus gave indication last week that such a price hike may be coming. David S., a forum administrator for the company, explained that components are mainly priced in U.S. dollars, and the phones are sold with razor-thin margins as it is.
OnePlus had to change its prices due to fluctuations once before, when the euro hit a nine-year low against the U.S. dollar back in 2015. Then, the OnePlus One (the company’s only phone) saw a €30 increase. As with this time around, the company absorbed the loss in between announcing the price hike and putting it into action.
The UK has not actually started the procedure yet to leave the EU. That comes down to the next prime minister, who will be chosen by the governing Conservative Party at the start of September. The new leader will have to decide when to invoke article 50 of the Lisbon Treaty, which starts a two-year negotiation process to leave the union.
The referendum held last month, which the Leave campaign won with a vote of 52 percent, does not bind the prime minister to invoke article 50, or indeed to take any action. Nonetheless, markets are reacting to the result of the referendum as it came as something of a shock. The pound is now at its lowest level in 31 years against the dollar.