fd1
Posts: 13
Joined: Fri Sep 30, 2016 11:59 am

Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 6:49 am

Since Brexit, the Pound has been pounded relentlessly. Given that Rpi is a made in UK product, is it possible that this British wonder board can be priced even cheaper?

hippy
Posts: 6851
Joined: Fri Sep 09, 2011 10:34 pm
Location: UK

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 7:11 am

fd1 wrote:Since Brexit, the Pound has been pounded relentlessly. Given that Rpi is a made in UK product, is it possible that this British wonder board can be priced even cheaper?
I would doubt it. The Pi is assembled in the UK but it uses imported USD priced components. Those components have cost 15% more since Brexit and were 20% more when I looked a couple of days ago after the pound took another hit.

mosespi
Posts: 508
Joined: Mon May 12, 2014 3:35 pm
Location: 34,-118
Contact: Website

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 7:16 am

"Assembled in the UK of foreign and domestic components" would likely be the more correct term and brings with it links to other currencies.

While a decrease in selling price would be neat, I sort of doubt it. While the costs associated with assembly may be down by a bit (relative to the dollar lets say), the cost of the parts, which I'm guessing are mostly imported, have likely not changed or have gone up relative to the pounds weakness. I'm sure there are more subtleties I can't think of.

Regards,
-Moses
Power problems? MoPower UPS for the Pi
http://www.allspectrum.com/mopower/

mosespi
Posts: 508
Joined: Mon May 12, 2014 3:35 pm
Location: 34,-118
Contact: Website

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 7:18 am

+1 hippy, beat me to it!
Power problems? MoPower UPS for the Pi
http://www.allspectrum.com/mopower/

User avatar
alexeames
Forum Moderator
Forum Moderator
Posts: 2869
Joined: Sat Mar 03, 2012 11:57 am
Location: UK
Contact: Website

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 10:36 am

fd1 wrote:Will Rpi price go down thanks to weaker Pound?
The Pi has always been quoted in dollars as the components are bought in dollars. So the answer to your title question is NO!
fd1 wrote:is it possible that this British wonder board can be priced even cheaper?
The answer to this question (decoupling from UK manufacturing part) is MAYBE, but WJDK.
Alex Eames RasPi.TV, RasP.iO

User avatar
HermannSW
Posts: 2021
Joined: Fri Jul 22, 2016 9:09 pm
Location: Eberbach, Germany
Contact: Website Twitter YouTube

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 2:58 pm

Its probably not the RPi you are interested, but the Pi Zero does cost 4£(5$), the same amount as shipping (to Germany). There is not much price difference to be expected ;-)
⇨https://stamm-wilbrandt.de/en/Raspberry_camera.html

https://github.com/Hermann-SW/Raspberry_v1_camera_global_external_shutter
https://stamm-wilbrandt.de/github_repo_i420toh264
https://github.com/Hermann-SW/fork-raspiraw
https://twitter.com/HermannSW

W. H. Heydt
Posts: 11671
Joined: Fri Mar 09, 2012 7:36 pm
Location: Vallejo, CA (US)

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 4:21 pm

As I recall, one of the reasons for pricing the Pi in US dollars was to decouple the price from local currency fluctuations. Likely the most noticeable effect will be to reduce labor costs in the factory in Wales and that will *probably* just increase Sony's profit margin. To the extent that happens with the Pi Zero, Sony will be happier to make more of them.

User avatar
alexeames
Forum Moderator
Forum Moderator
Posts: 2869
Joined: Sat Mar 03, 2012 11:57 am
Location: UK
Contact: Website

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 9:55 pm

W. H. Heydt wrote:Likely the most noticeable effect will be to reduce labor costs in the factory in Wales
I don't know for sure, but I suspect the labour is priced in GBP, so weaker GBP will likely have no direct impact on it.
It's only if you buy those GBP with another currency you already hold that it becomes cheaper.
I'm speculating though. :lol:
Alex Eames RasPi.TV, RasP.iO

W. H. Heydt
Posts: 11671
Joined: Fri Mar 09, 2012 7:36 pm
Location: Vallejo, CA (US)

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 11:10 pm

alexeames wrote:
W. H. Heydt wrote:Likely the most noticeable effect will be to reduce labor costs in the factory in Wales
I don't know for sure, but I suspect the labour is priced in GBP, so weaker GBP will likely have no direct impact on it.
It's only if you buy those GBP with another currency you already hold that it becomes cheaper.
I'm speculating though. :lol:
tt probably depends on how the finished Pis are priced coming out of the factory. If it is in constant US dollars, then a lower GBP would increase Sony's margin. If it's in GPB, then the margins will go down due to buying components in US dollars. In either case, constant labor rates (in GBP) goes down if the GBP goes down relative to the US dollar, while component prices remain constant.

I am sure that the thing is a nightmare for the accountants, no matter what.

cjan
Posts: 777
Joined: Sun May 06, 2012 12:00 am

Re: Will Rpi price go down thanks to weaker Pound?

Sat Oct 08, 2016 11:27 pm

brought Rpi-1 from RS 4 years age, payed it for Pound not US$, so yes.

peterlite
Posts: 720
Joined: Sun Apr 17, 2016 4:00 am

Re: Will Rpi price go down thanks to weaker Pound?

Sun Oct 09, 2016 2:08 am

Is the motherboard made in Wales? Are or any of the components made in Wales? Where is the box printed?

Perhaps Wales could exit Britain. For money, they could replace the pound with a Pi Zero or a glass of Tomas Watkins OSB.

W. H. Heydt
Posts: 11671
Joined: Fri Mar 09, 2012 7:36 pm
Location: Vallejo, CA (US)

Re: Will Rpi price go down thanks to weaker Pound?

Sun Oct 09, 2016 2:38 am

cjan wrote:brought Rpi-1 from RS 4 years age, payed it for Pound not US$, so yes.
That's unclear... Yes, what?
Pis are officially priced in constant US dollars.
If the GBP trades at $1.50, then a $35 Pi will sell for a bit under 24GBP. plus VAT.
If the GBP trades at $1.00, them an $35 Pi will sell for 35GBP, plus VAT.

So...buying a Pi in GPB will vary so long as the official price is constant in US dollars. Thus, the answer to the question in the subject line is, no. A weaker GBP will result in the same price in US dollars (since that is the--constant--list price), but a higher price in GBP.

hippy
Posts: 6851
Joined: Fri Sep 09, 2011 10:34 pm
Location: UK

Re: Will Rpi price go down thanks to weaker Pound?

Sun Oct 09, 2016 5:21 pm

W. H. Heydt wrote:Pis are officially priced in constant US dollars.
Not in the UK. Otherwise the GBP price would rise and fall as the exchange rate changed.

If one purchased a Pi in the UK and wanted to pay in USD; the listed GBP price should be converted according to the exchange rate and that is what you would be charged. That may not be whatever notional USD price there is, more often than not won't be.

The Pi may be quoted as a $5/ $25 / $35 computer but that is best considered as a marketing slogan than official pricing.

W. H. Heydt
Posts: 11671
Joined: Fri Mar 09, 2012 7:36 pm
Location: Vallejo, CA (US)

Re: Will Rpi price go down thanks to weaker Pound?

Sun Oct 09, 2016 8:41 pm

hippy wrote:
W. H. Heydt wrote:Pis are officially priced in constant US dollars.
Not in the UK. Otherwise the GBP price would rise and fall as the exchange rate changed.

If one purchased a Pi in the UK and wanted to pay in USD; the listed GBP price should be converted according to the exchange rate and that is what you would be charged. That may not be whatever notional USD price there is, more often than not won't be.

The Pi may be quoted as a $5/ $25 / $35 computer but that is best considered as a marketing slogan than official pricing.
Have your way, but over the last 4.5 years, the top model of Pi has always been....$35, when purchased through official channels. Over the same period, I have seen varying prices cited by UK buyers shopping in the official distribution channels.

boyoh
Posts: 1416
Joined: Fri Nov 23, 2012 3:30 pm
Location: Selby. North Yorkshire .UK

Re: Will Rpi price go down thanks to weaker Pound?

Sun Oct 09, 2016 9:50 pm

fd1 wrote:Since Brexit, the Pound has been pounded relentlessly. Given that Rpi is a made in UK product, is it possible that this British wonder board can be priced even cheaper?
Lets keep the forum to solving Pi problems, and not how much it cost's
The components will be bought from the cheapest supplier.to make the
Most profit

China Taiwan NOT UK
BoyOh ( Selby, North Yorkshire.UK)
Some Times Right Some Times Wrong

BMS Doug
Posts: 3824
Joined: Thu Mar 27, 2014 2:42 pm
Location: London, UK

Re: Will Rpi price go down thanks to weaker Pound?

Sun Oct 09, 2016 10:27 pm

boyoh wrote: Lets keep the forum to solving Pi problems, and not how much it cost's
The components will be bought from the cheapest supplier.to make the
Most profit

China Taiwan NOT UK
Component quality is something that the Pi Trading team keep an eye on, they won't let the Pi suffer from poor quality components for the sake of a few extra pence profit.

As mentioned previously, the Pi is priced in American dollars because for international sale most electronic components have a fairly static dollar price where the price in other currencies fluctuates relative to the dollar.

See the FAQ
4. WHY IS THE PRICE IN US DOLLARS? YOU ARE A UK COMPANY!

The components we buy are priced in dollars, and we negotiate manufacturing in dollars. Because currency markets are so volatile, we price the final board in dollars too so we don’t have to keep changing the price.
Doug.
Building Management Systems Engineer.

User avatar
alexeames
Forum Moderator
Forum Moderator
Posts: 2869
Joined: Sat Mar 03, 2012 11:57 am
Location: UK
Contact: Website

Re: Will Rpi price go down thanks to weaker Pound?

Mon Oct 10, 2016 8:29 am

I think we've got to the point where the question is well and truly answered and all that is left is the potential for spiralling into an argument. The original post was reported by some, but I let it slide. Now it's been discussed I'm going to close the thread before it goes bad. :lol:

Thanks for contributions everyone.
Alex Eames RasPi.TV, RasP.iO

Return to “General discussion”