What is an OEM product and why is it cheaper?

What is an OEM product and why is it cheaper?

What is an OEM product and why is it cheaper?

 When you buy a computer hardware or software component, you will most likely come across a product with the acronym OEM, which stands for Original Equipment Manufacturer, and this OEM product will likely be sold at a lower price than normal retail products. Then What Is An OEM Product And Why Is It Cheaper. The following is a complete explanation of OEM products.

What is an OEM Product

In the past, OEMs referred to companies that initially built a particular product, which they then sold to other companies and resold. But over time, the term has become a label used to describe various companies and relationships between companies, in an increasingly complex IT supply chain. OEM relationships often overlap between companies that bring IT products to market.

It's not uncommon for a company to act as an OEM and sell systems to other OEMs simultaneously. This is why OEM products are usually sold in a generic box or retail packaging case. They weren't designed to be on store shelves.

OEM Hardware Products

OEM hardware has exactly the same capability and performance as its retail counterpart. Hard drives, optical drives, and some PCI expansion cards are the most common types of components offered as OEMs. But many other products can be offered in this way in limited quantities.

However, hardware usually does not come with additional components. OEM computer processors, for example, may not ship with additional components. OEM VGA or hard drives often don't come with the cables or adapters needed to use them. There may also be limited warranty. When compared with the retail warranty. This is because it is expected that the system manufacturer will provide it.

OEM Software Products

Software companies also sell OEM versions of their products to large hardware OEMs or smaller system builders, who incorporate software in the products they sell. Windows is the most common example of OEM software, and is often picked up by people building their own machines, but there are also OEM versions of security suites, system utilities and productivity software. When you buy this software, you are usually only given the package that contains the software and a license key. Don't expect to receive any documentation. In fact, most OEM licensed software comes without technical support.

OEM example

To explain further, let's say Asus sells graphics cards like their RoG series. Now, Asus doesn't make actual GPUs. Nvidia or AMD not. So, Nvidia or AMD will be OEMs. Another example lets say IBM makes a wired PC by Acme, Co. Then Acme, Co. will be OEM. These are also called “value added resellers” in some cases.

Why Are OEM Products Cheaper?

Products from OEMs are usually cheaper due to economies of scale. As companies partner with other companies to produce goods in large quantities, costs and production times are significantly reduced. Even though the products are cheaper and deliver the same features and performance, you may not receive some “extras” such as technical support, which are usually handled by PC manufacturers.

Is It Safe To Buy OEM Products

Buying OEM Products is very safe and legal, but you have to be aware of the risks. You can usually save some money, but if you run into problems then you have no support at all. Sometimes, OEM hardware can be more expensive than retail. This usually happens when it is about to end its useful life. Spare stock is sometimes put up for sale as OEM parts and then sold for as much or more as retail.


So What Are OEM Products? Companies whose goods are used as components in other companies' products, who then sell the finished goods to users. And keep in mind before buying an OEM product, do a quick price comparison before making your choice. Know exactly what is and isn't in your purchase. And rest assured that you will be able to get support if needed.

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Resa Risyan

Just an ordinary person who wants to share a little knowledge, hopefully the knowledge I provide can be useful for all of us. Keep in mind! Useful knowledge is an investment in the afterlife.

Also, read the article about What is Programming?. And see you in another article. Bye
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