Original Equipment Manufacturer - Confusing and Contradictory Definitions

Confusing and Contradictory Definitions

The term OEM may also, somewhat counter-intuitively, refer to a company that purchases for use in its own products a component made by a second company. Under this definition, if Apple purchases optical drives from Toshiba to put in its computers, Apple is the OEM, and Toshiba would classify the transaction as an "OEM sale".

Contradictory usage

An even more confusing, contradictory definition is a company that sells the product of a second company under its own brand name.

Alternatives to contradictory or confusing use

Instead of OEM, companies may label themselves resellers.

Companies who buy parts and then resell those parts with some amount of additional value added along the way (such as assembly, customer support, or continued maintenance) may be better termed value-added resellers (VARs) or resellers.

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