Original Equipment Manufacturer

(redirected from Original-equipment-manufacturer)
Also found in: Financial.

Original Equipment Manufacturer

(company)
(OEM) A misleading term for a company which repackages equipment, such as computers, made by other companies. Unlike a value added reseller, an OEM does not necessarily add anything except their name to the product. In some cases though they may integrate components into complete systems. OEM arrangements are often made for marketing reasons.

This article is provided by FOLDOC - Free Online Dictionary of Computing (foldoc.org)

OEM

(Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and resells them. However, the reseller is often the designer of the equipment, which is made to order. Many of the largest PC vendors are OEMs, including HP, Dell and Lenovo. Essentially, any PC company that does not have its own manufacturing facilities is an OEM.

Added Value or None
The OEM often does not add anything to the equipment and merely brands it with its own logo. The OEM's name is either placed on the devices by the contract manufacturer that makes the equipment or by the OEM itself. However, OEMs may indeed add value. For example, a "value added reseller" will purchase a computer, add its own software and/or hardware and sell it as a turnkey system. See VAR and turnkey system.

There are numerous companies that specialize in OEM manufacturing and never sell anything under their own brand (see contract manufacturer). Many companies do both. They manufacture and sell retail, but also have a separate OEM division for goods that are private labeled.
Copyright © 1981-2019 by The Computer Language Company Inc. All Rights reserved. THIS DEFINITION IS FOR PERSONAL USE ONLY. All other reproduction is strictly prohibited without permission from the publisher.
References in periodicals archive ?
DeCamp is now responsible for PPG Industries' global original-equipment-manufacturer powder coatings, in addition to his duties managing the company's light industrial coatings business.