An Original Equipment Manufacturer (OEM) is a company that produces equipment which is rebranded and sold by another company. Originally, the term referred to the manufacturer of the equipment, but it has since expanded to include companies that purchase goods and sell them under their own brand name.
OEMs can be seen in a variety of industries, including computers. Many of the largest PC manufacturers, such as HP, Dell, and Lenovo, are OEMs. They purchase components from other manufacturers and assemble them to create their own product.
In many cases, the manufacturer of the custom-made equipment is also the reseller. This allows for greater control over the production process and ensures that the final product meets specific requirements.
FAQ
What is the difference between an OEM and a VAR?
An OEM produces the equipment, while a VAR (Value-Added Reseller) purchases and modifies existing products to meet the specific needs of their customers.
What are the benefits of using an OEM?
Using an OEM can often result in significant cost savings, as the manufacturer is able to purchase components at a lower cost than a company that produces its own equipment. Additionally, OEMs often have more expertise in a specific area, allowing for greater customization and specialization.
Can consumers purchase directly from an OEM?
While some OEMs do sell directly to consumers, the majority of their products are sold through other companies that rebrand and resell them.
Conclusion
An Original Equipment Manufacturer plays a critical role in the production of many products we use in our daily lives. By purchasing components from other manufacturers and assembling them under their own brand name, OEMs are able to create high-quality products at lower costs.
