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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...

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Definition: 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 OEM reseller is often the designer of the equipment, which is made to order.

Added Value or None
The reseller often does not add extra value to the equipment, but merely brands it with its own logo. The reseller's name is either placed on the devices by the contract manufacturer that makes the equipment or by the reseller itself. However, a reseller may indeed add value. For example, it might purchase a computer, add its own hardware and software and sell it as a turnkey system (see VAR).

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.



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