Original Equipment Manufacturer, abbreviated as OEM, manufactures products or components that are purchased by another company and retailed under that purchasing company’s brand name. OEM refers to the company that originally manufactured the product.
An Original Equipment Manufacturer (OEM) is a company that produces parts and equipment that may be marketed by another manufacturer. For example, if Acme Manufacturing Co. makes power cords that are used on IBM computers, Acme is an OEM.
However, the term is used in several other ways, which causes ambiguity. It sometimes means the maker of a system that includes other companies' subsystems, an end-product producer, an automotive part that is manufactured by the same company that produced the original part used in the automobile's assembly, or a value-added reseller.