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Brexit Britain: Microsoft hikes prices by 22%

'Hard' Brexit talk pushes pound to 31-year low

Microsoft products are about to get a whole lot more expensive for U.K. buyers.

The U.S. tech firm announced price increases on Monday that will boost the cost of some products by 22% following of a steep drop in the value of the pound.

The increases, which will take effect on Jan. 1, 2017, apply only to Microsoft’s (MSFT, Tech30) business customers.

Other tech companies have raised prices in the wake of the June 23 EU referendum. But Microsoft’s increase is larger than that of rivals including Apple (AAPL, Tech30), HP (HPQ) and Dell, which have all increased prices by roughly 10%.

Chinese smartphone maker OnePlus also hiked the price of its OnePlus3 model by 6.5%.

The pound has dropped more than 18% against the dollar since British voters chose to leave the EU.

Its decline has hurt companies that make money in Britain but report earnings in other currencies. Tech companies are especially vulnerable because most of the components used in their products are priced in dollars.

Related: Brits are paying more after Brexit vote

Microsoft said its new pricing will apply to all business customers — including those in the public sector.

It’s a change that could prove costly to the U.K. government, which considers Microsoft one of its “strategic suppliers.”

The government does not reveal the total value of its contracts with Microsoft, because different departments make their own deals. But the company is preferred supplier of software to the U.K. public sector.