Microsoft has increased Windows 11 licence fees for PC makers by up to 10%, intensifying hardware cost pressures amid ongoing component shortages and pushing retail prices higher for Surface devices and potentially new PCs.
Microsoft has raised the price of Windows 11 licences sold to PC makers, adding a fresh cost pressure to an industry already dealing with expensive memory, storage and graphics components. According to reports cited by Phonandroid and United Daily News, the increase has averaged between 7% and 10% since July, a sharper move than the modest annual adjustments manufacturers usually see.
That matters because the licence cost is only one part of a wider squeeze on hardware pricing. Windows Central reported that Microsoft has already lifted prices across its Surface PC range, with some models now starting above $1,000 and flagship devices at $1,500, as the RAM shortage continues to push up production costs. In some cases, Surface Laptop and Surface Pro prices have risen by as much as $500 from their 2024 launch levels.
The new licensing move also highlights a split between what manufacturers pay and what consumers see at retail. Windows Central and Tom’s Hardware have reported that Microsoft sells Windows 11 digital licences directly to consumers through its own store, with Home priced at $139 and Pro at $199.99 or $200. That is separate from the OEM pricing paid by PC builders, which varies depending on the processor inside the machine. United Daily News said more powerful CPUs attract higher licence charges.
Some PC makers have responded by shipping machines without an operating system, allowing them to cut the sticker price and leave buyers to install Linux or obtain Windows separately. Tom’s Hardware has also noted that Windows 11 can be run unactivated, albeit with restrictions, while discounted keys circulate in the grey market. For now, Microsoft appears to be trying to make Windows 11 lighter on memory use, but that effort has not yet offset the hardware cost trend. If the current component squeeze persists, industry reports suggest PC prices could rise again in the coming quarter.
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