- a company whose products, such as manufactured parts or computer software, are repackaged and sold by a second company, often as part of a larger system
- the company that buys the original items and resells them, often under its own name
Origin of OEMo(riginal) e(quipment) m(anufacturer)
oem - Computer Definition
A company that builds components or products that are incorporated into products or systems sold by another company commonly referred to as a value-added reseller (VAR). An Ethernet network interface card (NIC), for example, might be built by an OEM to the specifications of a manufacturer of laptop or tablet computers.
(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 reseller is often the designer of the equipment, which is made to order. Many of the largest PC vendors are OEMs, including HP, Dell and Lenovo. Essentially, any PC company that does not have its own manufacturing facilities is an OEM. Added Value or None The OEM often does not add anything to the equipment and merely brands it with its own logo. The OEM's name is either placed on the devices by the contract manufacturer that makes the equipment or by the OEM itself. However, OEMs may indeed add value. For example, a "value added reseller" will purchase a computer, add its own software and/or hardware and sell it as a turnkey system. See VAR and turnkey system. 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.