Original equipment manufacturer (OEM)

Original equipment manufacturer (OEM),

Definition of Original equipment manufacturer (OEM):

  1. Computers: Customizer who assembles and sells a complete system under its own name, such as the Dell Corp. See also value added reseller.

  2. General: Producer or manufacturer of a complete end product (such as a car engine, cooling unit, or a circuit board) or a sub-assembly (such as a carburetor, compressor, or a chip) used in an end product.

  3. The second firm is referred to as a value-added reseller (VAR) because by augmenting or incorporating features or services, it adds value to the original item. The VAR works closely with the OEM, which often customizes designs based on the VAR company's needs and specifications.

  4. An original equipment manufacturer (OEM) traditionally is defined as a company whose goods are used as components in the products of another company, which then sells the finished item to users.

How to use Original equipment manufacturer (OEM) in a sentence?

  1. Traditionally, OEMs focused on business-to-business sales, while VARs marketed to the public or other end users.
  2. An original equipment manufacturer (OEM) provides the components in another company's product, working closely with the seller of the finished product, known as the value-added reseller (VAR).
  3. OEMs stand in contrast to aftermarket products, which offer replacement parts that are generic and cheaper than an OEM's parts.
  4. In the computer industry, OEM may refer to the company that buys products and then incorporates or rebrands them into a new product under its own name.

Meaning of Original equipment manufacturer (OEM) & Original equipment manufacturer (OEM) Definition