Q: What is OEM? Should I buy OEM part vs. Retail Parts?

A: OEM = “Original Equipment Maker”. OEM parts are sold directly to system assemblers to be assembled into systems sold to you. Its counterpart is “retail parts”, which are meant to show up on store shelves so you can buy them directly.

OEM parts lack a lot of the pretty packaging, extra software bundles, etc. as the system assembler don’t want those. OEM parts are cheaper as they come with less stuff, are made at larger quantities, and often sold at quantity discount.

Some vendors will sell OEM parts direct to public, thus “pass the savings onto you”.

OEM parts usually do NOT come with any warranty, as opposed by the “retail” products. The “retail” AMD CPU’s comes with 3 years warranty. The OEM AMD CPU’s are warrantied by the individual vendors, and most only offer 30 days of warranty. Some can go as low as 7 or 14 days. Check with the retailer regarding any warranty issues BEFORE your purchase.

Sometimes, the OEM parts are of slightly inferior quality than the retail version. They use components of slightly lower spec than retail version. This is rare now, but it has happened before.

Should you buy OEM instead of Retail? Assuming the items are identical, then the answer depends on how much do you care about warranty. If you constantly tweak your system, you are in danger of blowing up the system (or melt it down or whatever), thus warranty may be good for you. If the difference is less than 10%, I’d probably go for the retail part. If the difference is MORE than 10%, I may go OEM and forego the warranty.

“OEM”, as previously stated, means “Original Equipment Manufacturer”. It is sold to PC manufacturers.

OEM software (and hardware) is substantially cheaper than their retail counterparts. Why the price difference?

OEM hardware and software usually come in bare minimum packaging- padded, surely, but no plastic CD cases or full retail boxes for hardware. Why else?

OEM Hardware (e.x. Hard Drives) usually comes on its own. No drivers CD, No coupons, no manual, no setup software, no screws, no SATA cables, etc.

OEM Software arrives in bare minimum packaging. In the case of Windows, and Microsoft Office (as well as other software), OEM copies are tied with the computers you first install them on- hence, the “certificate of authenticity” that each comes with that permanently sticks on your computer case. The only exception to this is if your motherboard dies within warranty- if so, you can call Microsoft by phone and they will allow you to reactivate your OEM software on a new motherboard. You can change all sorts of other stuff, but to Microsoft, a new motherboard = a new PC.

In conclusion, OEM software and hardware can be substantially cheaper for users who know what they’re doing. But it comes without frills or setup help and OEM software is often very limited, without the computer transfer rights (uninstall on one PC, install on a different one) of the retail editions. Consider if you will upgrade your motherboard or get a new PC in a few years. If the answer is “yes”, you probably would not want OEM software.

Hope this helps!