OEM facts for kids

OEM stands for Original Equipment Manufacturing. It's a way of making products where one company builds parts or whole products for another company to sell. Think of it like a secret helper! This often happens with things like car parts, airplane parts, and even computer parts and computer programs.

What is OEM?

When you hear about OEM, it usually means that a product or a part of a product was made by a company different from the one that sells it to you. For example, a company like "CarMaker A" might buy tires from "Tire Company B" to put on their new cars. "Tire Company B" is the OEM for those tires.

This also happens a lot with computers. A computer brand might buy hard drives or memory chips from another company. The company that makes the computer then puts these parts into their own computers and sells them.

Why Companies Use OEM

Companies use OEM for a few main reasons:

• Saving Money: It can be cheaper for a company to buy parts from an OEM specialist than to make every single part themselves.
• Special Skills: Some companies are experts at making certain parts, like computer chips or specific car engines. Other companies can buy these parts from the experts instead of trying to learn how to make them.
• Focus: By using OEM parts, a company can focus on what they do best, like designing the final product or marketing it.

OEM Products and Features

Sometimes, an OEM version of a product might be a bit different from the original version made by the first company. For example, an OEM computer program might come with just the disc and a special code (called a license). It might not include a big instruction manual or fancy packaging. This helps keep the cost lower.

Images for kids

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  This Schneider MF2 keyboard was manufactured by Cherry in 1988.

See also

In Spanish: Fabricante de equipo original para niñosOutsourcing