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What is OEM Products and Why they Cheaper?

What are OEM Products and Why it Cheaper

When you buy a computer hardware or software component, you are likely to come across a product with the acronym OEM, which stands for Original Equipment Manufacturer, and these OEM products will likely sell for less than normal retail products. Then what is an OEM product and why is it cheaper. Here's a full explanation of OEM products.


What is OEM Product

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

It's not uncommon for companies to act as OEMs and sell systems to other OEMs simultaneously. This is why OEM products are usually sold in generic boxes or retail packaging wraps. They are not designed to be on store shelves.


OEM Hardware Products

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

However, the hardware usually does not come with additional components. OEM computer processors, for example, may not ship with additional components. OEM VGA or hard drives are often not included with the cables or adapters required to use them. There may also be a warranty limit. When compared to retail warranties. 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 into the products they sell. Windows is the most common example of OEM software and is often picked up by people who build their own machines, but there are also OEM versions for security suites, system utilities, and productivity software. When you buy this software, you are usually only provided with a package containing the software and a license key. Don't expect to receive any documentation. In fact, most OEM licensed software comes without technical support.


OEM Sample

To explain further, let's say Asus sells graphics cards like their RoG series. Now, Asus doesn't make actual GPUs. Nvidia or AMD doesn't. So, Nvidia or AMD will be OEMs. As another example, let's say IBM made a PC using cables 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 thanks to economies of scale. Because companies partner with other companies to produce goods in bulk, prices and lead times are significantly reduced. Even though the products are cheaper and offer the same features and performance, you may not receive some 'additional' such as technical support, which will usually be handled by PC companies.


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 absolutely no support. Sometimes, OEM hardware can cost more than retail. This usually happens when it is about to expire. Reserve stock is sometimes put up for sale as OEM parts and then sold for as much or more than retail.


Summary

So What Are OEM Products? Companies whose goods are used as components in the products of other companies, which then sell the finished goods to users. And keep in mind before buying OEM products, 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.

OEM Software Products


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


OEM Sample


To explain further, let's say Asus sells graphics cards like their RoG series. Now, Asus doesn't make actual GPUs. Nvidia or AMD don't. So, Nvidia or AMD will be OEMs. As another example, let's say IBM made a PC using cables 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 thanks to economies of scale. Because companies partner with other companies to produce goods in bulk, prices and lead times are significantly reduced. Even though the products are cheaper and offer the same features and performance, you may not receive some “additional” such as technical support, which will usually be handled by PC companies.


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 absolutely no support. Sometimes, OEM hardware can cost more than retail. This usually happens when it is about to expire. Reserve stock is sometimes put up for sale as OEM parts and then sold for as much or more than retail.


Conclusion


So What Are OEM Products? Companies whose goods are used as components in the products of other companies, which then sell the finished goods to users. And keep in mind before buying OEM products, 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.

Hopefully, this article about What is OEM Products and Why they Cheaper gives you a little insight. Also, read an article about What is Primary Keys and Foreign Keys in SQL Database that you may need to know. Thank you.

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