What is OEM?

OEM stands for Original Equipment Manufacturer. It refers to a company that makes parts or products that are used in another company’s final product.

• OEMs build parts or systems that are used by other companies (called resellers or brands) in their final products.
• OEM products are often cheaper and sold in bulk.
• OEM versions of software or hardware might come without fancy packaging or support, as they are meant for businesses, not end-users.

Example

Imagine you buy a laptop from Dell. The processor inside might be made by Intel, and the hard drive might be made by Seagate. Even though Dell sells the laptop, the parts inside it come from OEMs like Intel and Seagate.

So, Intel and Seagate are OEMs — they manufacture the original components.

OEM in Software

For software, an OEM license might be sold to PC manufacturers.

For example:

Microsoft Windows OEM version might come pre-installed on a new computer.
You can’t transfer it to another PC, unlike a retail version.

OEM = A company that makes parts or software used by another company in its final product.