Windows OEM Licensing Fees Rise Up to 10% as PC Makers Prepare More Price Increases

Windows PC prices could rise again during the third quarter of 2026 as manufacturers face higher software licensing costs alongside already expensive hardware components.

Microsoft has reportedly increased Windows OEM licensing fees by an average of 7% to 10% starting in July. PC makers are now dealing with higher operating system costs at the same time that memory, storage, processors, graphics cards and motherboards remain under pricing pressure.

The added expense is expected to contribute to another roughly 5% increase in finished PC prices during the quarter.

OEM licensing fees are the amounts PC manufacturers pay to ship Windows with their systems. These costs vary depending on the type of machine and processor configuration, which means more powerful PCs can carry higher licensing charges.

Windows licensing adds another cost for PC makers

Annual Windows licensing adjustments are not unusual, but this year's increase is reportedly larger than normal. Previous increases were generally in the single digit range, while the latest adjustment reaches as high as 10% on average.

That matters because PC manufacturers have little room to absorb additional costs.

Hardware prices have already climbed substantially since late 2025. Memory and storage shortages have increased the cost of building PCs, while processor and graphics card pricing has also moved higher. Motherboards have faced their own supply problems, adding another expense to complete systems.

Software costs are now adding to that pressure.

ASUS and Acer are preparing additional price increases

Several PC manufacturers have already raised prices to reflect higher component costs, and more increases are expected during the current quarter.

ASUS and Acer have reportedly informed the market that additional single digit price increases are coming. ASUS product pricing is said to have risen by around 30% on average compared with the fourth quarter of 2025, showing how quickly the cost of complete systems has changed.

Some of the Windows licensing increase may already be included in recent retail price adjustments. However, continued increases could become more visible if manufacturers can no longer absorb them alongside rising hardware expenses.

The timing is difficult for the PC industry because shipments have also weakened. Higher selling prices can support revenue in the short term, but repeatedly raising prices risks discouraging buyers from replacing older computers.

That is particularly important for mainstream laptops and desktops, where small changes to the total price can strongly influence purchasing decisions.

The licensing structure also means the impact will not necessarily be identical across every PC. Systems with higher tier processors can carry more expensive Windows licensing costs, so premium machines may face different increases from entry level products.

PC buyers were already dealing with expensive memory, SSDs and other components before the reported Windows fee increase arrived. With manufacturers now facing higher costs on both the hardware and software sides, another round of retail price increases during the third quarter appears increasingly likely.

The broader challenge for PC makers will be balancing those higher costs against slowing demand. If prices continue rising through the rest of 2026, manufacturers may find it harder to convince people that upgrading an existing PC or buying a new system is worth the additional expense.