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System builders take a beating from hung parliament

While interesting for the world as a whole, the UK’s complete lack of decision when it comes to selecting a government is going to have a potentially disasterous impact on the system builder market.

Already working off low margins, the currency market’s response to a hung parliament has seen a highly destructive movement toward the dollar. Trading at $1.52 to the pound around a week ago, sterling fell to $1.46 earlier today. What difference does that make in real terms?  For a system with a cost price of $1,000 and a 10% mark-up, this kind of currency move can reduce the profit made by the system builder from over £54 down to just £13. That’s tragic.

KitGuru says: We all love diversity. Diversity comes from a thriving local system builder market. These companies cannot survive a substantial drop in profits, which can lead to business closures. Let’s hope the country pulls itself together soon and we see a rally. It will be much better for all of us technology lovers.

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