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August 23, 2016updated 23 Jan 2017 10:34am

What is OEM?

What is an Original Equipment Manufacturer?

By Vinod

OEM is an acronym for Original Equipment Manufacturer.

An OEM makes a component or part that is used in another company’s end product. An OEM therefore manufactures original equipment which is to be assembled together to form a complete design.

OEMs are seen as economically productive for businesses since they tend to decrease the cost of production. They are also useful for companies that do not necessarily have the infrastructure of facilities to construct certain components in their own factories.

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