What are the risks associated with buying an OEM processor?
A. Have you ever done a Pricewatch search of AMD K6 prices and wondered why the company included OEM (Original Equipment Manufacturer) in the description of the product. Do you know what OEM means? Its definition is very important. Semiconductor manufacturers, including AMD, have two distribution channels. The first is the OEM channel, and the other is the retail channel. An OEM product is intended to be sold as part of a complete system rather than as separate components. This is the definition. The OEM channel provides the manufacturer with the most revenue, and provides the most security in terms of their finances. This is because the OEMs have contracts, which guarantee huge monthly purchases for up to 12 months in advance, and allows the manufacturers to offer much better pricing to the OEMs (sort of like magazine subscriptions vs. newsstand purchases). The retail channel is handled through authorized distributors who purchase in quantities of perhaps 10,000 or more per month. The
