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What is the full form of OEM?

By Anushree Goswami Last updated : April 20, 2024

OEM is an abbreviation of "Original Equipment Manufacturer". Its meaning has changed over time. In former times, it alluded to a corporation that manufactures products to be utilized as components by another corporation in its closing stages of manufacturing of products. For example, if Acme Manufacturing Co. manufactures power cords to be utilized on Dell computers then Acme is the OEM.

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On the opposite, in modern times, OEM alludes to a corporation that utilizes products manufactured by other companies as components in its closing stages of manufacturing of products or rebrands the manufacturer's product to put up for sale under its brand name. For example, the majority of PC sellers such as HP, Lenovo, and Dell who don't have their manufacturing units are OEM. They assemble the manufacturer's components and brand the end product with their brand logo.

Software of computer

• The popular and well-liked example of a corporation is Microsoft that issues its Windows operating systems for use by OEM computer manufacturers through the selling of Microsoft Windows.
• OEM product keys rates are lesser than their retail corresponding item, particularly as they are acquired in huge quantities. But they use similar software as retail versions of Windows.
• They are first and foremost for PC manufacturer OEMs and system builders, and as such are in general sold in volume licensing deals to various manufacturers such as Dell, HP, ASUS, Acer, Lenovo, Wistron, Inventec, Supermicro, Compal Electronics, Quanta Computer, Foxconn, Pegatron, Jabil, Flex, etc..
• These OEMs generally use a process known as System Locked Pre-installation, which pre-activates Windows on PCs that are to be sold through mass distribution.
• These OEMs generally sell software that is in other ways not pre-installed on Windows from Microsoft on their own, on the images of Windows that will be installed on their PCs, suitable hardware drivers, malware and maintenance software, a variety of apps, etc.
• Individuals may also acquire OEM "system-builder" licenses for private use to comprise virtual hardware or for sale/resale on PCs which they put together.
• According to Microsoft’s EULA on the subject of PC manufacturers and system-builder OEM licenses, the product key is attached to the PC motherboard which it’s at the beginning installed on, and there is in general no transferring of the key between PCs subsequently.