Meaning of OEM

  • Thread starter Thread starter tinnews
  • Start date Start date
T

tinnews

While I know that 'OEM' means ink as supplied by the printer
manufacturer to most people in this newsgroup might I point out that
it means something quite different in the 'computer spares' context in
the UK at least.

What OEM means to me is "as supplied *to* an Original Equipment
Manufacturer". In other words it's a computer part (or whatever) in a
bulk/minimal format with no retail packaging etc. If you look through
the computer suppliers here you'll find quite a lot of "OEM" parts and
they are significantly *cheaper* than the alternative (sometimes
described as "Retail packed") parts.

An OEM optical drive (for example) will come in a plain bag with no
extras like software on CD or instructions whereas a "retail" one will
have a pretty box, CDs of software, etc.

So to a UK person buying computer supplies "OEM" tends to mean
cheaper, without frills, not what it seems to mean here.
 
While I know that 'OEM' means ink as supplied by the printer
manufacturer to most people in this newsgroup might I point out that
it means something quite different in the 'computer spares' context in
the UK at least.

What OEM means to me is "as supplied *to* an Original Equipment
Manufacturer". In other words it's a computer part (or whatever) in a
bulk/minimal format with no retail packaging etc. If you look through
the computer suppliers here you'll find quite a lot of "OEM" parts and
they are significantly *cheaper* than the alternative (sometimes
described as "Retail packed") parts.

An OEM optical drive (for example) will come in a plain bag with no
extras like software on CD or instructions whereas a "retail" one will
have a pretty box, CDs of software, etc.

So to a UK person buying computer supplies "OEM" tends to mean
cheaper, without frills, not what it seems to mean here.
Click to expand...

Same in the US, Chris. Although the part is cheaper by virtue of bulk
sales, less packaging, shipping, marketing, etc, it is the same part as
others with the mfg's same ID number or name.
 
While I know that 'OEM' means ink as supplied by the printer
manufacturer to most people in this newsgroup might I point out that
it means something quite different in the 'computer spares' context in
the UK at least.

What OEM means to me is "as supplied *to* an Original Equipment
Manufacturer". In other words it's a computer part (or whatever) in a
bulk/minimal format with no retail packaging etc. If you look through
the computer suppliers here you'll find quite a lot of "OEM" parts and
they are significantly *cheaper* than the alternative (sometimes
described as "Retail packed") parts.

An OEM optical drive (for example) will come in a plain bag with no
extras like software on CD or instructions whereas a "retail" one will
have a pretty box, CDs of software, etc.

So to a UK person buying computer supplies "OEM" tends to mean
cheaper, without frills, not what it seems to mean here.
Click to expand...

OEM actually means the same thing in the greater context. For
whatever reason, it seems that it's easier for most people to
understand using the vehicular model, where this same system is used.

Let's say you own a car made by General Motors. If you buy
replacement parts sourced through them ("Genuine GM Parts"), they're
said to be the OEM parts. It doesn't matter if they're actually made
by GM or not, but they're warranted and packaged for sale by GM for GM
vehicles. Even if you found "Mazda" labeling on some component
sourced this way, it'd still be considered a "genuine GM part."

Now, if you were to buy a compatible part made by another
manufacturer, or even if you were to source the part from the same
source that GM got theirs from, it'd be considered "aftermarket"
because it doesn't go through GM at all. That's what we mean when we
talk about OEM inks. If we're talking about Canon OEM ink, we mean
that it was bought by Canon from some source, they put it in a box
labeled Canon and sold and intended to be used in a Canon printer.

In the case of computer parts, it's the same thing, but people don't
like to think of it in the same terms. Let's say you bought a
computer from Ed's computer shop (ECS). Ed is the OEM. They made the
computer. They'll buy some bulk parts that are intended to be used as
replacement parts or as new components for ECS computers. All of
those components are technically branded "genuine Ed's computer
parts", because they're warranted by Ed, and packaged for sale by Ed
for computers made by Ed. The packaging might not amount to much
beyond a sticker that says "Ed's computer shop" on the plastic wrap,
and sometimes not even that, but that's what's meant by an OEM part
that you buy from a computer shop. The ones in the retail boxes are
(in these terms) aftermarket parts by Sony, Toshiba, NEC, etc.
 
An OEM optical drive (for example) will come in a plain bag with no
extras like software on CD or instructions whereas a "retail" one will
have a pretty box, CDs of software, etc.

So to a UK person buying computer supplies "OEM" tends to mean
cheaper, without frills, not what it seems to mean here.
Click to expand...

Chris-

Suppose you have a brand X computer. It needs a new optical drive, so you
order one from the manufacturer. What you receive may have been made by
some other drive company, but it is the one specified by the computer
manufacturer for your particular model. That is an OEM part, as specified
by the Original Equipment Manufacturer. You shouldn't need software or
instructions, since those came with the computer when you bought it.

If you know which optical drive is specified for your computer, you may be
able to save money by buying it from some other source. It is still the
OEM-specified drive.

This is approximately the meaning of OEM that was used in industry since
before computers and inkjet printers came along. However, it is clear
that meanings change over time. That is how language evolves. I can't
understand the meaning of many of the phrases used by today's teenagers.
I recognize the words, but not how they are used!

Fred
 
Beware of buying OEM, you may not get any warranty without
a County Court action.
Even if you can contact the manufacturer they generally say,
"It's an OEM part, contact your comouter vendor"

BUT you bought from a supplier, and they bought in bulk, OEM
designated devices, because they are cheaper, and have a bigger
profit margin.
After a year they say "Not our problem, you must have
mistreated it"
So they give you the call centre runaround, at national call
rates.
Certainly for rotating devices. with lasers that tend to go sick,
or hard drives I'd prefer to pay the few percent extra for the
mfrs. warranty, even then you may still get the runaround.
 
As you mention OEM means "Original Equipment Manufacturer", as opposed
to a 3rd party product. It may not be MADE by the company that packages
it, but it is the product that manufacturers supply to the public with
their product.

The term, for instance, is used with car parts. For example, Honda used
Michelin for the tires sold on their cars from the factory. The tires
usually are special order, made in huge quantities for Honda and may not
be available to the general public as a part, even though Michelin make
lots of tires that will fit Hondas. If your Michelin Honda tire were to
fail during warranty, you may not be able to get a replacement from a
Michelin dealer, but would be able to from Honda.

Honda got the tires for less than an equivalent Michelin tire would be
available to you because it is supplied to Honda in vast quantities, may
have some features removed or adapted, and the packaging or labeling
might be different.

However, again with car parts, an OEM part made by either the car
manufacturer, or their sub contractor, may actually been more costly
than a 3rd party part. For instance, a Ford branded OEM shock absorber
may cost more than buying a 3rd party shock absorber.

As you stated, with computer suppliers, supplies to OEM manufacturers
are often without some hardware, may have unique firmware, may have
different mechanical specs, are often packaged in generic packaging
without instruction manuals or software. This keeps cost down, however,
when you, as an end user buy an OEM model of something, it may actually
have NO warranty, or a much shortened or reduced one. Computer
manufacturers often have contracts with companies they buy OEM packaged
goods from, that they will absorb a certain percent of defective
product, and handle all warranty claims. Since warranty is a major
liability the product can be sold much cheaper is someone else takes the
risk. So if a computer manufacturer buys a hard drive OEM, they may buy
it with only a 90 day warranty, or maybe even a 10 day warranty. they
test the drive themselves, and if it works, that may be where the
liability of the actually manufacturer of the hard drive ends. If the
drive gets installed and is sold in a computer, the end user gripes to
the computer manufacturer, not the hard drive maker. These situations
have occurred before. If average failures during the computer
manufacturer's warranty occur, they eat it, but let's say 80% of the
drives fail, then the contract may allow them to go back to the OEM
supplier and demand they cover the replacements.

In the case of ink, OEM means the ink branded by the printer
manufacturer, and usually sold at a premium price. 3rd party are either
ink formulators or distributors who sell ink under different brand
names. It may actually be the same ink you get from the printer
manufacturer, or a similar ink made by the same company, or a similar
ink made by another company, or a quite different ink made by either.

I hope that clarifies things, or makes them inkier still, as the case my
be... ;-)

Art
 
I obviously should have read ahead a bit before answering the same
posting you did... I posted almost the same thing, only using Ford
rather than GM... weird.

Art
 
While I know that 'OEM' means ink as supplied by the printer
manufacturer to most people in this newsgroup might I point out that
it means something quite different in the 'computer spares' context in
the UK at least.

What OEM means to me is "as supplied *to* an Original Equipment
Manufacturer". In other words it's a computer part (or whatever) in a
bulk/minimal format with no retail packaging etc. If you look through
the computer suppliers here you'll find quite a lot of "OEM" parts and
they are significantly *cheaper* than the alternative (sometimes
described as "Retail packed") parts.

An OEM optical drive (for example) will come in a plain bag with no
extras like software on CD or instructions whereas a "retail" one will
have a pretty box, CDs of software, etc.

So to a UK person buying computer supplies "OEM" tends to mean
cheaper, without frills, not what it seems to mean here.
Click to expand...

Chris
Interestingly the very first time I heard the term was many years ago when I
worked for IBM (the first time of two occasions). They were just beginning to
be hurt by people making IBM compatible products. They called these suppliers
OEM (Other Equipment Manufacturers). How the world changes!
Tony
 
Fred McKenzie said:
Chris-

Suppose you have a brand X computer. It needs a new optical drive, so you
order one from the manufacturer. What you receive may have been made by
some other drive company, but it is the one specified by the computer
manufacturer for your particular model. That is an OEM part, as specified
by the Original Equipment Manufacturer. You shouldn't need software or
instructions, since those came with the computer when you bought it.
Click to expand...
Not really what actually happens.

I order an 'OEM' CD/DVD drive without *any* indication of what
computer it's for so it can't be OEM in the sense that it's the same
as any originally fitted by the manufacturer.

What has evolved (certainly here in the UK) is that OEM means simply a
"without frills" item which may or may not be as originally specified
by the computer manufacturer.
 
Beware of buying OEM, you may not get any warranty without
a County Court action.
Even if you can contact the manufacturer they generally say,
"It's an OEM part, contact your comouter vendor"

BUT you bought from a supplier, and they bought in bulk, OEM
designated devices, because they are cheaper, and have a bigger
profit margin.
After a year they say "Not our problem, you must have
mistreated it"
So they give you the call centre runaround, at national call
rates.
Certainly for rotating devices. with lasers that tend to go sick,
or hard drives I'd prefer to pay the few percent extra for the
mfrs. warranty, even then you may still get the runaround.
Click to expand...

Since in the UK our rights are wholly with respect to the supplier
from whom we bought the item and not at all against the manufacturer
this isn't really an issue here.
 
Arthur Entlich said:
As you mention OEM means "Original Equipment Manufacturer", as opposed
to a 3rd party product. It may not be MADE by the company that packages
it, but it is the product that manufacturers supply to the public with
their product.
Click to expand...
But it no longer means that in the computer spares/parts world.

An OEM optical drive is simply one with no 'goodies', it has no
connection whatsoever with the original manufacturer of the computer
you're buying it for, the supplier doesn't even know what computer
you're buying it for.
The term, for instance, is used with car parts. For example, Honda used
Michelin for the tires sold on their cars from the factory. The tires
usually are special order, made in huge quantities for Honda and may not
be available to the general public as a part, even though Michelin make
lots of tires that will fit Hondas. If your Michelin Honda tire were to
fail during warranty, you may not be able to get a replacement from a
Michelin dealer, but would be able to from Honda.

Honda got the tires for less than an equivalent Michelin tire would be
available to you because it is supplied to Honda in vast quantities, may
have some features removed or adapted, and the packaging or labeling
might be different.

However, again with car parts, an OEM part made by either the car
manufacturer, or their sub contractor, may actually been more costly
than a 3rd party part. For instance, a Ford branded OEM shock absorber
may cost more than buying a 3rd party shock absorber.
Click to expand...
Yes, true for car parts and that's what I would take it to mean in
that field. What I was trying to say was that the situation is
*entirely* different now in the computer field and OEM *doesn't* mean
the same thing.
In the case of ink, OEM means the ink branded by the printer
manufacturer, and usually sold at a premium price. 3rd party are either
ink formulators or distributors who sell ink under different brand
names. It may actually be the same ink you get from the printer
manufacturer, or a similar ink made by the same company, or a similar
ink made by another company, or a quite different ink made by either.
Click to expand...
Yes, I realise that's what's meant by OEM in this group regarding
printer ink but it's a *different* usage from that which applies in
most of the computer (at least home PC) parts business and I was just
trying to bring this out because I think many people coming to this
newsgroup afresh may find this confusing.
 
Hi Chris,

I can't say how the term OEM is being used in the UK, since I am not
there, but we too have access to OEM "spare" parts which come to us
cheaper and without the "frills", however, here the terminology still
means the same thing as it did with cars, etc.

Those "no frills" peripherals or parts (spares) aren't "no frills".
They are surplus OEM product which was manufactured and packaged for the
wholesale manufacturers of finished goods, at a discount due to either
quantity, quality, feature set changes or lack of extras and perhaps
warranty length. These OEM goods are actually sold under only
quasi-legal circumstances. OEM goods are actually NOT supposed to be
sold to end users at all. They should only be sold to equipment
builders or service depots, but either through diversion of the stock
(similar to gray market), sale of overstock or liquidation goods (in the
high tech market things become outdated so quickly discarding the last
version quickly is a method to save loses).

In reality, buying OEM as an end user is similar to buying an upgrade of
a computer program you do not have the original of. Legally, you have
no right to get the upgrade at upgrade price if you do not own a
legitimate original version, but it often works on your computer.

In some countries that allow for it, an OEM product may very well come
with a much smaller or nonexistent warranty from the manufacturer, and
this restricted or nonexistent warranty may be [passed on from the
retailer, leaving one stuck with a bad device and no method for a good
outcome. In the same way that although it may technically be legal to
buy a gray market product that was released to be sold in a specific
market that isn't your own, the company, at least in North America, can
legally refuse to honor any warranty, in fact, in some cases the
distributor sells the goods without any written warranty and none may be
forthcoming.

Art
 
Since in the UK our rights are wholly with respect to the supplier
from whom we bought the item and not at all against the manufacturer
this isn't really an issue here.
Click to expand...

And after a few months have passed the supplier claims
that the device has been in some way misused or hides
behind call centres and people who never deal with the
matter, or ring back.
It is an issue.
With retail products, you go after the vendor, and in the final
resort, after the runaround, go to Small Claims In the County
Court jointly against the vendor and one other, the
manufacturer, who warantees retail products, file your action,
pay the fee, and await the response.
Let the vendor and the manufacturer decide between
them who is going to honour the warranty.
Even the big multinationals and plc retail chains, with
their own legal teams, finally sort the matter out, and then
to avoid the courts "Sorry for the misunderstanding,
we are committed to goodwill, and are prepared to
replace the product (and pay the court fees + reasonable
costs)".
Teed off, I've been there, done that.
It's the whole point of having Small Claims Courts.
 
And after a few months have passed the supplier claims
that the device has been in some way misused or hides
behind call centres and people who never deal with the
matter, or ring back.
Click to expand...

I think you're saying the same as me, it's the *seller* who has
responsibility, not the manufacturer. It makes no difference
whatsover to your rights against the seller whether the item is OEM or
not though.
It is an issue.
With retail products, you go after the vendor, and in the final
resort, after the runaround, go to Small Claims In the County
Click to expand...

Yes, and an "OEM" product is just as "retail" in this context as any
other if you are a private buyer.
 
Arthur said:
I obviously should have read ahead a bit before answering the same
posting you did... I posted almost the same thing, only using Ford
rather than GM... weird.

Art
Click to expand...

Not really, I just have a preference for GM cars, so that's the brand
that popped in my head when I wrote it.

Now, we just need a Chrysler fan to show up for the hat-trick.

=============================
MCheu
 
The only question that might come up is the legitimacy of purchasing OEM
parts retail. Some packaging even will say "OEM - not to be sold to end
users", or something like that. So then the question arises if the end
user understood that in buying the product as OEM goods whether a
reasonable assumption could be made that they waived their rights to
warranty of any kind.

OEM parts are not made/packaged to be sold to end users, and, as I
stated earlier, are usually sold with restricted or no warranty as a
separate part. An example was with CPUs. Intel provided very different
warranties for :full box" versions, which were sold to end users and
packaged as such, which came with a one year or more warranty, versus
OEM versions which were only officially supposed to be sold in stalled
in computers which only ad a 90 day warranty. The full box version also
cost considerably more.

Art
 
Arthur Entlich said:
The only question that might come up is the legitimacy of purchasing OEM
parts retail. Some packaging even will say "OEM - not to be sold to end
users", or something like that. So then the question arises if the end
user understood that in buying the product as OEM goods whether a
reasonable assumption could be made that they waived their rights to
warranty of any kind.
Click to expand...
That is the seller's problem though, not the buyer's. If a bona fide
consumer buys something from a business then all of the consumer
legislation applies, the manufacturer can write what they like on the
packaging but it can't reduce the consumer's rights against the
business from whome they bought the goods.

OEM parts are not made/packaged to be sold to end users, and, as I
stated earlier, are usually sold with restricted or no warranty as a
separate part. An example was with CPUs. Intel provided very different
warranties for :full box" versions, which were sold to end users and
packaged as such, which came with a one year or more warranty, versus
OEM versions which were only officially supposed to be sold in stalled
in computers which only ad a 90 day warranty. The full box version also
cost considerably more.
Click to expand...
But (in the UK, and probably most of Europe) those warranties are *in
addition* to the 'fit for purpose' requirement. The right that the
buyer has to demand of the seller that the item is 'fit for purpose'
can't be curtailed or reduced in any retail transaction. The
manufacturer has no say whatsoever in the matter (unless they are
selling direct to the consumer, but then the same consumer legislation
would apply).

E.g. I bought a dishwasher a few years ago which had a manufacturer's
1 year warranty. It failed after about 18 months. I asked the web
'shop' that sold it to me to sort it out as a dishwasher is expected
to last more than 18 months (consumer legislation in this area is much
set about with 'reasonableness') and, with very little hesitation,
they agreed and got me a new replacement dishwasher. The fact that
the manufacturer's 1 year warranty had expired was completely
irrelevant.
 
I am NOT a Ford fan at all... I would never consider owning one. In
fact, I picked it because it is a brand of car that would likely need a
lot of replacement (OEM or aftermarket) parts ;-)

Art
 
Arthur said:
I am NOT a Ford fan at all... I would never consider owning one. In
fact, I picked it because it is a brand of car that would likely need a
lot of replacement (OEM or aftermarket) parts ;-)

Art
Click to expand...

Yeah. I owned a Ford, an Aerostar minivan. It was absolute hell to work
on, almost unrepairable. It was my first Ford. It suffered from a
well-known head gasket problem. It also suffered from the famous Ford
heater core problem. And thus it was my last Ford ever.

Richard
 
Arthur said:
In reality, buying OEM as an end user is similar to buying an upgrade of
a computer program you do not have the original of. Legally, you have
no right to get the upgrade at upgrade price if you do not own a
legitimate original version, but it often works on your computer.
Click to expand...

What the hell is this? Suppose my chipset being relatively new, I decide to
upgrade the processor. I can order a nice boxed one from a corner store and
pay big wampums. I can order the same on the net from AMD and save a little.
Or I can go to a big retailer, who has ordered batch a 1000 OEM of the same
processor and get it for even cheaper.

If Fry's does a better job at retailing the processor, they pick the marbles
on retailing, but AMD still makes a profit as a manufacturer. If AMD tries
outselling the big retailer, the corner stores won't be glad. If AMD didn't
want to give quantity discounts, well, Intel probably would. So they have to
give discount prices on quantities and pricing is a question of balance.

Hardware manufacturers always make a profit when one of their products is
sold. The market has different demands. Some people prefer to go to the corner
store and have their cpu installed. But computers are cheaper, therefore,
errors are less costly, and they've been demystified, they're now considered
as just another commodity, so the number of these corner stores is dwindling.
Most people prefer either to order directly from the manufacturer on the net
or to get their stuff from big retail stores that, just as manufacturers, buy
OEM in large quantities.

Of course, selling the boxes gets harder by the day. So, here comes the
bullshit about the OEM being second rate products. They're not! It's not like
3rd party inks: they bear the manufacturer's name and if they malfunction
during the warranty period, you may return them and get a new one. Note that
even large retailers sell boxes. There's always the kind of people who believe
that Windows XP they got in a box is great, whereas Linux, that they can get
for free on the net, is crap.

Branded OEM equipment is not poor quality.Now, could processors that use less
voltage be boxed whereas those that just meet the standards be OEMed ? Maybe.
But if you could toast your bread on your CPU or if it was in any other way
defective, it would legally have to be labeled "sold as is" for the warranty
to be waived. With the huge amount of OEM equipment sold on the market, no
company could pretend, that it was done without their knowledge and consent
and that the equipment needed more testing before it was released on the market.

I would think that OEM equipment is nowadays the major part of equipment sold
on the retail market. If there were so many problems with it, the matter would
have been made clear by now.
 
Back
Top