HP's looming price hike could drive sales blitz

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HP's looming price hike could drive sales blitz

HP Enterprise Group is the latest vendor to hike prices, with a 10 percent increase to hit its server, storage and networking range, and higher rises on many lines.

The Australian exchange rate against the US dollar is to blame, at least partially, for HP's rise, as well as for recent price hikes by Cisco and Apple.

The Australian dollar bought 94 US cents as recently as September, but since then has tumbled in value to be now at 78 cents.

[Related: Apple quietly puts up Australian iPhone 6 prices]

An HP spokesperson told CRN: "HP reviews pricing based on a variety of factors including currency exchange rates, which have been the major factor at play. HP will continue to ensure our products represent outstanding quality and overall value to our customers and partners."

Products such as its Gen8 range, processor kits, and third-party software options will increase more than 10 percent.

HP is hoping the impending price hike, which hits on 15 April, will spur partners to pull orders forward, a strategy that helped Cisco smash its most recent quarter.

According to an HP communication, sighted by CRN, the vendor has told its disties: "We urge you to speak with your partners today and pull forward any opened deals before this date.

"Please allow enough time for clean orders to be placed on HP by 5.00pm AEST on 14 April, 2015 and If you have any questions or would like to understand how this increase impacts any of your deals, please contact the respective category manager."

Cisco raised pricing by 12 percent on 14 March, with HP seemingly following the same messaging strategy by urging partners to bring orders forward and avoid the increase.

A number of major Cisco partners told CRN that Cisco had beaten targets for its third quarter, which ends 31 March, thanks to orders being pulled forward.

"Cisco's Q3 is traditionally a tough quarter this Q3 they have smashed their number," said one gold partner.

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