What are OEM products?
What are OEM products?
Hardware OEM products?
OEM software products?
OEM products pros and cons?
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Most companies do not produce their own products, but rather go to other companies to produce them for them. These second companies are what are known as OEMs and are the ones behind most of our technology products today. What are OEM products?
What are OEM products?
Are you buying new components or do you need to buy software? You can often see the term "OEM". We find out why these products are cheaper and what you will sacrifice for a lower price.
You have probably come across the incomprehensible abbreviation "OEM" when buying components or software. It exactly means "Original Equipment Manufacturer", which is "original equipment manufacturer". Therefore, an original product of one company may be sold by a completely different company under this brand name.
OEM stands for "Original Equipment Manufacturer". In practice, this means that one company produces products, such as software or hardware, that another company can sell.
In many cases, OEMs do not provide technical support or additional equipment. The only thing left is the manufacturer's logo. The OEM program pre-installed on the computer or laptop at the factory is for this device only. You may not sell, copy, or transfer it to other computers.
One of the most popular OEM solutions is the Windows operating system developed by Microsoft. The company sells software at an attractive price to other counterparties involved in the production of computer equipment.
However, Microsoft does not provide technical support, as it must be provided by the manufacturer of the final product. It is the same with motherboards. These devices, although they have the logo of the company that manufactured them, they are different from the options that are sold to users in the offer box.
In this case, drivers, technical support or updates must be requested from the manufacturer of the entire computer set. The most popular companies offering embedded computers under their own brand names are HP and Dell.
OEM products are mainly used to reduce production costs. Thus, thanks to these companies, cheaper technological products can be obtained. If companies that sell high-tech devices like smartphones had to manufacture all of their components, chips, and cameras, they would surely get more expensive phones.
This is not to say that tech industry giants like Apple or Samsung don't make their own components. In fact they do, but in most cases, they turn to OEM companies to finish developing the missing components for a specific project. Another thing that must be taken into account is that the supplier companies often make other different products, expanding the offer for other companies that want to have their services.
What is worth remembering?Thanks to the OEM our devices are cheaper
Original equipment manufacturer products are intended for sale only to electronics assemblers, well-known brands such as Dell, Apple, etc.
In an example, it looks like this. AMD and Intel are engaged in the development and manufacture of chips, these companies are original equipment manufacturers that are installed in other companies' computers. Dell and other manufacturers buy out-of-the-box processors from Intel and graphics cards from AMD and then put them in your PC. Purchasing is done in bulk directly from the OEM through channels not available to the average consumer.
OEM products are usually sold in an unsightly form: a plastic wrap or cardboard box. No self-respecting store will put such products on the shelves. So OEM products are extremely rare in retail, but from time to time you can stumble across them on the internet at large trading sites. These offers must be constantly monitored, because there are many people who want to buy a product with a minimum margin, so OEM products usually fall apart as soon as they appear in catalogs.
There are no online stores that deal exclusively with the sale of OEM products.
As for the issue of legality, you should not worry: buying products from the manufacturer itself is absolutely legal. But by doing so, you agree to comply with the conditions indicated in the contract.
If you buy an OEM computer, that is, an off-the-shelf kit, and want to replace some items for greater efficiency, then you should remember that in this case you will lose your license.
In short, replacing a motherboard, processor, or hard drive is all about software legality. It's also impossible to sell the software itself because the OEM packages a particular computer with the software, such as the Microsoft Windows operating system or (sometimes) an office suite.
By Therefore, if you want to upgrade your computer, you should choose a different model so as not to lose your operating system license.
OEM hardware and software can be a bit intimidating to potential users, but you don't have to be afraid of anything.
Another thing is comfort. If you buy an OEM computer, you can be sure that it has been assembled correctly, according to certain technologies, tested and configured to work so that it can be used almost immediately after taking it out of the package.
In the field of OEM products there are also companies that manufacture finished products for other companies. They carry out the entire manufacturing subcontracting process and are limited to receiving the conceptual design of any product, with the logo of the company that hired them. That is to say, it would be as if a company had hired another to make a complete device and bear its name, but the true manufacturer is the manufacturing company.
In many cases, a powerful company can partner with several OEMs and strike a deal. This agreement lies in the fact that these OEM companies will offer them a type of component at an estimated price. This price is usually cheaper if they buy the products exclusively from these manufacturing companies.
Technical support for OEM productsWhen buying an OEM version of a product, that is, a ready-made computer with an operating system, you should know that in the event of a failure, you do not report it to the manufacturer, but to the company that "makes" the computer. Therefore, if you bought a PC from HP, although you know the manufacturers of the individual components, provides the product under warranty to the vendor of the end device.
This is because the OEM is responsible for the warranty, not the parent brand.
Differences with normal trade?OEM products (Original Equipment Manufacturer, in Spanish Original Equipment Manufacturer), are those unfinished products that are made by a specific company and then sell them to another company, who finish the product and market it . This business model reduces production costs, and is popularly focused on the technology area, where it gives very good results.
Both OEM and Retail licenses are practically the same, except for these small differences: Although throughout this article we have seen the main differences between OEM and ODM products, when importing the best option is always to carry out a study of the needs and expectations of the company and the products it wants, a task in which purchasing consultants have a lot of experience.
1.- Packaging and distribution .- OEM hardware and software packages for distribution to system assemblers. This justifies the fact that such products are sold in regular packaging (not common in retail). They have no place on store shelves, it's simple! In fact, in most distribution networks it is not realistic to find an OEM. But they are actively trading on online platforms.
2-. Capabilities and Warranty.- In terms of capabilities, OEM and general products are the same, considered analogous. In most cases, hard drives, optical drives, expansion cards are offered; other items are limited. Also, the computer does not come with the necessary components, for example, processors may come without fans and hard drives without adapters.
OEM for software products Windows is the most common example of OEM software. Upon purchase, you will receive the software itself and a license key without any documentation or technical support. The purchased OEM version will be connected exclusively to one device: your computer, where the installation was performed.
When upgrading the motherboard or replacing the computer, you will need to buy the OEM again.
Is it worth buying OEM? As we said, buying OEM hardware and software solutions is legal and safe. You get a product with full functionality, but you need to pay attention to a few points.
It saves money, but you will have to solve problems that arise during operation yourself. People with technical knowledge will not have any particular difficulty. Otherwise, it's best to choose retail versions of products, even if they are decidedly more expensive.
The number of cheaper OEM products depends on the type of product and the manufacturer's pricing policy. For example, OEM antivirus solutions are typically 25% to 50% cheaper than retail ones. Similar discounts can be found for other public services.
But the main problem associated with the purchase of OEM products is not the warranty conditions, but the low availability: most developers are dedicated to the sale of retail-type products.
Buying OEM hardware also has problems. For one thing, you can save a lot on it. But on the other hand, you have to buy additional cables, fans and other trifles that are not included in the kit, the costs of which will eat up all the savings.
In some cases, OEM equipment is more expensive than retail equipment. This happens when a manufacturer has unsold inventory of a product that is nearing the end of its useful life. They are then offered for sale with an OEM tag at a price above the average retail price.
Comparing prices from different sellers will help you decide what is more profitable to buy. Keep in mind that the markup on a retail product comes not only from attractive packaging, but also from documentation, included accessories, and warranty support.
The initial savings hides the lack of technical support (which is very unpleasant when problems arise). But the discount reaches 25-50%! But here we remember about the purchase of missing items, which is covered by this discount.
Note.- There are also limitations to the guarantee: it can be reduced in terms of terms or even absent (it is assumed that the seller obtained a guarantee). In addition, you will face the problem of general availability of retail products and lack of OEMs. Therefore, before buying, analyze the prices and try to prevent all risks.
Hardware OEM products?
Products such as optical drives, CPUs, hard drives and so on are considered OEM hardware. Although hardware of this type is similar in terms of features to retail hardware, the truth is that many times it does not come with additional components. This means that if you buy an OEM processor, the fan may not be included.
The most frequently offered OEM parts are storage drives, optical drives, and PCI network cards. Other products with the same label are in limited quantities. In terms of features and performance, they are no different from their lesser counterparts.
The first nuance is that OEM equipment often lacks additional components, even those that are necessary to install the equipment. Desktop processors may be sold without fans, a video card, or a hard drive and usually don't come with cables or adapters. The buyer is supposed to pick up the missing components by himself.
The second feature: warranty restrictions. Compared to retail products, the warranty period may be shorter or even non-existent. There's a reason for this: the OEM relies on the assembler or retailer to handle after-sales service. For example, a Dell laptop with a faulty AMD graphics card will need to be taken to a Dell service center, not AMD.
In addition, an OEM hardware has a shorter warranty than another retail name and many do not include support software or make them work completely. If one such company manufactures hard drives for another, the OEM company sells these components so that the company that buys those hard drives can customize them with their specific brand.
Regarding hardware and other devices. A classic is found in pre-assembled computers and other very common helmets that we see is in the OEM legend of an ink cartridge in case we have a printer, either laser or inkjet. This legend can be found in the same ink cartridge catalog or on its own packaging.
This means that this cartridge was made by the same manufacturer as the printer and that it works exclusively in these machines. Something that can be negative from the point of view of money, since an original cartridge of this type is usually more expensive than others (generic) developed by other manufacturers.
Note.- Purchasing OEM hardware makes you an assembler, so you will not be able to get direct support from the original equipment manufacturer.
OEM Software Products?
As for OEM software, it is sold bundled with some sort of hardware in most cases. If not, this software is sold on an optical disc (CD or DVD). Similarly, OEM software is focused on the business model called B2B (Business - to - Business). This business model is based on the alliance of 2 companies whose objective is to offer end users a more complete product.
The clearest example of this type of OEM software is Microsoft. This is because, apart from having direct licenses for end users, it has different OEM licenses that it offers to computer manufacturers to install on them. This way, you get a PC with Windows natively pre-installed.
Windows is the most obvious example of an OEM software product. Many Windows buyers are people who build their own computers. In addition to operating systems, there are also OEM versions of security packages, system utilities, and productivity software.
When you buy software directly from the manufacturer, you only receive an envelope with a storage medium and a license key. There will be no documentation. As for technical support, it does not apply to most OEM programs.
As a general rule, OEM software is licensed per computer, so you cannot install it on another PC. In theory, each OEM version of Windows is tied to a specific assembly (usually a motherboard), but in practice, Microsoft is pretty lenient about this rule.
To reactivate Windows on another computer, you must contact Microsoft Support. Sometimes you need to do this to remove Windows 10 watermark.
In a good way, Microsoft is not required to support versions of Windows implemented as OEM products. Other software providers may have stricter rules in this regard. So buying an OEM software product is kind of a risk you take to save money. It happens that after changing the computer or motherboard, you have to buy the software again, since the old one cannot be activated again.
Generally, the OEM version of any software or application can be had by purchasing some type of hardware. A computer manufacturer not only enters into a purchase and distribution contract with a hardware OEM. Also, it establishes software contacts of this type so that said computer is functional. Advantages and disadvantages.
Without leaving Windows, there are times that you will find licenses for sale at a very low price, and far from the more than one hundred euros that the original can cost. These are usually OEM licenses that will only be valid for one computer, and that the seller has somehow managed to obtain in ways that are not always appropriate.
Which is better: OEM or ODM?
Let's not fall into the mistake of thinking that by choosing ODM products we will not be able to customize our brand. In fact, as we have already talked about on other occasions in this blog, it is very important that our products differ from those of the competition, and that starts with small corporate details: logo, colors, packaging, etc., something that can be personalized. (on a limited basis) on ODM products.
One of the disadvantages of importing ODM items is that most of the quality control is the responsibility of the client company, which is why it is always better to have a sourcing partner that follows up on all voluntary import inspections.
The acronyms OEM and ODM may be familiar to you, especially if, by hobby or by profession, you are a person close to the electronics sector. However, for many companies that start importing, the OEM and ODM concepts are new and can be confusing, so let's see what these two acronyms mean in the industrial sector.
In a very general way, it seems that the description of these acronyms gives us the main clue about their meaning. While OEM stands for Original Equipment Manufacturer, ODM stands for Original Design Manufacturer. In other words, in the first case (OEM) we would talk about products that a company designs and whose manufacturing is left in the hands of a third party; in the case of ODM, the same manufacturer is responsible for designing and developing the product (which is why that item can be sold to thousands of companies around the world as a private label).
Beyond the differences in the person responsible for designing the product, choosing to import OEM or ODM products is associated with a series of advantages and disadvantages, which we are going to see in greater detail so that each company can choose what type of products to import from Asia.
OEM manufacturing, usually reserved for large volumes of purchases or for companies with extensive experience in imports or with very exclusive products, entails a significant initial investment prior to import: product design. One of the best-known examples of this type of manufacturing is that carried out by Apple, an American company that invests heavily in research and development, but leaves the responsibility of manufacturing its technological products to Foxconn. ODM manufacturing On this occasion, the manufacturer is the one that has the original design of the product and manufactures it with a margin of customization according to the client's requirements. Keep in mind that since countries like China are already very advanced in product design, ODM manufacturing is widespread. Many of the products that we see for sale in marketplaces such as Amazon respond to this type of manufacturing: wireless headphones, smartwatches or air purifiers, among many other examples. These are visually very similar products that share not only aesthetics (except for some customization), but also features and accessories.
Pros and Cons of OEM products?
1.- Manufacturers of OEM products specialize in them, increasing quality and durability.
2.- The development and production costs are low. Especially if they are manufacturers of computer components.
3.- OEM companies experiment with better and innovative technologies.
4.- Allows organizations to focus on their own finished products, instead of spending resources on manufacturing all the components of the same item.
5.- The products of these companies have a longer shelf life. This is because by specializing in them, the quality is much higher
The disadvantages of the OEM solution
1.- As far as computer products are concerned, technical support is limited and in some cases, it is null.
2.- Many OEM manufacturers have limited stocks and high demand. In such a way that the availability of products of this type would be reduced.
3.- In case of failures in the components, much of the responsibility is borne by the company that has purchased the components, not the manufacturer.
4.- The manufacturing and distribution process can be altered if there is no coordination. This happens when 2 companies are contracted to make OEM hardware and software, if one of them fails in the calendar, it will affect the entire production of the components.
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