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What's OEM and Why Should I Care?
When one begins to initially search for components for their PC, one might run across the term "OEM" as they peruse a website's catalog. Obviously, there's some differential between this part and other, unlabeled parts. Any component can be purchased as "OEM". "OEM" stands for Original Equipment Manufacturer. Parts can be distriubuted either as a retail or an OEM version.
OEM parts originate because of excess supply at a manufacturing plant. OEM parts begin their life with the intention of being installed at the factory into a complete computer system, as opposed to being sold directly and individually to consumers, as are retail parts. The computer makers enter into the deal with AMD or whomever to guarantee a constant supply, which provides for lower prices per part. AMD enters this contract because it reduces the volatility of the demand for their component, plus it provides that more components will be bought than actually used (this is the basic premise behind bulk purchasing and selling).As there is excess supply, the factories must do something with the parts to help recoup expenses. A "grey market" develops where the factory sells the extra parts at cost to other factories who happen to be short on the particular part or to brokers. The brokers then sell smaller lots of the extra parts to resellers who then sell the parts to average consumers. An OEM part tends to be cheaper than a retail part and has a shorter warranty (30 days or so) which is through the reseller of the part, not by AMD or whomever else.
This sinuous route causes components to change hands multiple times. Many of the hands in the deal tend to be unknown names to all of us. While a broker could very well stiff the reseller on the quality of a certain component, the odds of this are actually quite slim. The reseller has a name to uphold themselves and also have to warranty the item for 30 days (long enough for you to figure out if the part works or not).
When buying components (OEM or retail), you should do the following:
Use a credit card when ordering to provide for a paper trail Install and test the components before the warranty expires so you know for sure if it's good or not
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