The Full form of OEM is Original Equipment Manufacturer. OEM refers to a company that uses the components in its end products which are manufactured by other companies or re-brands the manufacturer’s product to sell it under its own name. Or, we can say that OEM is a company that produces equipment’s and components that may be marketed by another manufacturer. For example, Schneider, a German company, manufactures parts and equipment for OEMs including Dell, Google, Apple, Huawei and Nintendo. Most of the PC vendors such as Lenovo, HP and Dell who don’t have their own manufacturing units are OEMs.
They assemble the parts and components of the manufacturer and brand the end product with their own logo. OEM refers to something that is specifically made for the original product, while the aftermarket refers to the parts and equipment made by another company that a consumer may use as a replacement. While an OEM is similar to a value-added re-seller (VAR), it specifically refers to the act of branding a product by a company to its own name and offering its own support, warranty and licensing of the product. The term sometimes causes ambiguity because OEMs are not the original manufacturers; they customize the original product.