What Is an Original Equipment Manufacturer (OEM)?
An original equipment manufacturer (OEM) traditionally is defined as a company whose goods are used as components in the products of another company, which then sells the finished item to users.
The second firm is referred to as a value-added reseller (VAR) because by augmenting or incorporating features or services, it adds value to the original item. The VAR works closely with the OEM, which often customizes designs based on the VAR company’s needs and specifications.
Original Equipment Manufacturer (OEM)
- An original equipment manufacturer (OEM) provides the components in another company’s product, working closely with the seller of the finished product, known as the value-added reseller (VAR).
- In the computer industry, OEM may refer to the company that buys products and then incorporates or rebrands them into a new product under its own name.
- Traditionally, OEMs focused on business-to-business sales, while