What does OEM Oringinal Equipment Manufacturer mean?
The term, OEM (original equipment manufacturer) refers to companies that make products for others to repackage and sell. Resellers buy OEM products in bulk, minus the costly retail packaging that comes with individually sold units. The product itself is essentially the same as its more expensive, retail-packaged sibling. OEM products are used in many industries, but are perhaps most prevalent in electronics. Generally, dealers of OEM products add something of value before reselling the merchandise. An OEM vendor that does this is known as a “value added reseller” (VAR). A VAR might build components, sub-systems, or systems from quality OEM parts. OEM goods allow VARs a wide range of creative marketing choices, which permits smaller dealers to be competitive in the marketplace. OEM products can be utilized at several different levels of industry. For example, assume a fictitious company, “Head Music,” makes popular sound cards, and wants to introduce a DVD player to the marketplace. Not
