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What is OEM?
 
Stands for Original Equipment Manufacturer.  Usually a manufacturer will produce products and have it private labelled to other manufacturers.  For example Mitsumi will produce a CD Rom and other companies will buy it from them and put their logo on it. 

More notes for the Techie
How often have you heard that you are getting computer parts that are OEM?  Okay, the definition doesn't explain what the difference is.  In today's market, sometimes the definition changes or becomes so stretched that the definition doesn't make anything clear at all, so I'm going to give you the answer that you want to hear.

What's the difference between an OEM and a Retail version?  
The common answer from sales reps is there is no difference, but this one comes with no packaging and it's cheaper.  Hmmm.. not quite the right answer all the time.

Example: I'm purchasing a Norton Anti-virus OEM, is it the same as the retail one?  Answer: Not always. Of course the manufacturer probably bundled it with hardware so they can offer it to you free or at a discounted price but I've seen NAV versions with a 90 day Live Update instead of their standard 1 year Live Update.  Okay go ahead and click on Live update to find out what that means.

Most times you will find a difference in the OEM versions.  Often they are just cost-saving methods to save on packaging, manuals, and a great way to get their products out cheap, but you have to be careful what you purchase.

Example: Intel Pentium OEM vs. Retail Box.  If you purchase an OEM CPU, you'll get just the CPU and a 90 day to 1 year warranty, while paying the extra bucks for a retail box, you'll get the Intel heatsink/fan, the CPU and a 3 year Warranty.

Example: OEM memory vs. Major Brands.  Best way to describe this is performance and compatibility issues.  Buy a MAJOR BRAND!

OEM products shouldn't be looked at negatively.  Here's one of the big advantages.  When your system integrator is putting your system together,  they can get a a CD-Rom without a manual, a CD-RW without the fancy box, a DVD without the DVD decoder software, Microsoft products without a user guide, or even video cards, sound cards, and modems, that are exactly the same as retail boxes at discounted prices from the manufacturer.  That's how most computer systems are put together.  No more need for the assembly team to open up box after box after box.  They just come in a nice plastic sleeve with a piece of tape over it.