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Meaning of OEM

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OEM, an acronym for Original Equipment Manufacturer, refers to companies that design and produce components or products that are then sold and used by another company. In this context, the manufacturer creating the original product is referred to as the OEM. These components or products are often integrated into the end product of the second company, which sells the final product under its own brand name. OEMs play a crucial role in the supply chain, providing specialized parts or equipment to various industries without directly marketing the final product to end consumers. The term underscores the distinction between the company that produces the original equipment and the one that incorporates it into a finished product for distribution and sale.

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