BrexEffect: Sonos Raising Prices 15-25 Percent in U.K.
Call it the #BrexEffect. Sonos has joined Apple and other American companies in raising its prices in the U.K. in the wake of the June 2016 vote to extricate Britain from the European Union. Beginning Feb. 23, prices for some of the firm's product will go up as much as 25 percent, it was announced Monday.
"Our prices are defined regionally," the California-based speaker company said. "In the UK, this includes local taxation and import duties, but we pay for everything we make in US dollars. Over recent months, there has been a significant change on the US Dollar to GBP exchange rate. As a result, our existing pricing has become unsustainable and, like many other companies, we have to increase prices for all products priced in GBP."
That "significant change" in currency value was of course triggered by Brexit, and its passing means U.K. audiophiles will have to pay 30 more pounds for the Play:1 speaker (£169 to £199) or 70 more quid for the higher end Play:5 (£429 to £499). The company's CONNECT line of equipment for upgrading existing sound systems is seeing the highest hike (£279 to £349 for basic, and £399 to £499 for the tonier CONNECT:AMP). (See a full pricing list.)
Other tech firms that responded to Brexit with higher prices in the U.K. include Apple, Amazon, Tesla and Microsoft.