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Subject:
From:
Bob Wright <[log in to unmask]>
Reply To:
PCBUILD - Personal Computer Hardware discussion List <[log in to unmask]>
Date:
Sun, 10 Jan 1999 13:18:17 -0700
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At 11:15 AM 1/10/99 , Isaac Martinez wrote:
>Can anyone purchase from an OEM like you suggested in your original message??


This terminology is getting a bit muddled in this thread, so let me attempt to
straighten it out a bit.   The following are in basic terms and only to explain
the relationships that exist in the computer industry today.

Manufacturer:

This is a company that builds original products either software or hardware.
Companies like Microsoft, ASUS Tek, Tyan, Creative labs, Mag Innovision,
Intel, AMD, Seagate, Maxtor,  and others fall into this category.  They all
build original products and sell them both as retail or OEM.

OEM - Original Equipment Manafacturers:

Typically, this is a term for companies that assemble computers from parts
purchased from Manufacturers.  The manufacturers supply parts in two versions
to the market place, the retail version and the OEM version.   Windows95/98 is
supplied this way, as is most computer components.  OEM hardware typically
is supplied without manuals or drivers, but carry a manufacturers warranty...
but no tech support from the manufacturer.  Typically, the OEM is responsible
for tech support on the completed computer, releaving the Manufacturer of
this cost, hence the lower price.

Wholesalers or Discounters:

These companies, as a rule buy large bulk shipments from Manufacturers of either
OEM or retail components.  They then in turn sell to small OEM computer builders,
resellers, computer repair shops.  Some of these companies have branched out in
recent years to selling OEM products directly to consumers.   Some large resellers
have large enough volumes to actually buy directly from Manufacturers and are in
this case selling as Discounters.

One special note is about Microsoft, (one of the reasons the Federal Governement
has Microsoft in an anti-trust suit).   Microsoft sells the OEM version of
Windows95/98/NT with the provision it should only come into the hands of an OEM.
The OEM version does not include tech support from Microsoft.   Microsoft also has
been putting the pressure on wholesalers & discounters not to sell the OEM version of
their keyboard & mouse except to OEM manufacturers.  A few of the largest wholesalers
of computer components are listening to Microsoft on this point with deaf ears...  and
still selling the products to consumers.  The resale versions come in pretty boxes
and the OEM version in plastic bags.

I hope this helps....

   Bob Wright

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