From Wikipedia, the free encyclopedia.
OEM is an acronym for Original Equipment Manufacturer.
An OEM is a company that builds components that are used in systems sold by another company called a value-added reseller or VAR. The practice of a VAR selling products with components from OEMs is common in the elecronics and computer industry.
In common usage, a VAR is sometimes called an OEM, despite this being a complete reversal of the literal meaning of both terms. This misunderstaning arises from use of the term OEM as a verb. For example, a VAR might say that they are going to OEM a new product, meaning they are going to offer a new product based on components from an OEM.
