What is the full form of OEM?
The OEM full form is Original Equipment Manufacturer. Traditionally, an OEM is a company whose goods are utilized as components in another company’s products and then sold directly to consumers. OEM refers to a company that resells goods or components of another company’s product to its own consumers under its own brand. OEMs are prevalent in the automobile and computing industries.
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OEM example:
- A manufacturing company that produces tires for automobiles. Consider a scenario in which a person purchases a Honda city car. The tyres included with the vehicle are manufactured by Apollo, which is referred to as an OEM here.
- Foxconn (Taiwanese electronics contract production company) produces a variety of equipment and components for Dell, Apple Inc, Nintendo, Xiaomi, Google, Huawei, etc.
History of OEM
OEM derives from the Dutch phrase ‘onder eigen merk’, which translates to ‘under own brand’ in English and dates back to the late 20th century.
The connection between the OEM and VAR
VAR (Value-Added Resellers) sells goods from the original equipment manufacturer (OEM), but includes additional functionality. VARs help OEMs promote their products, and OEMs allow VARs access to their product lines, allowing them to sell them with additional enhancements that will improve product service.
Advantages of OEM parts
- Quality guaranteed
- Comes on warranties
- Simple to choose which part you required
Disadvantages of OEM parts
- High Costs
- Mostly sold at discounts
- Hardly any variety in parts
