- OEM (Original Equipment Manufacturer) refers to hardware and software pieces that are meant to be used by computer builders. OEM hard drives are normally only sold to OEM system builders. Even though they are not destined for the end users, in some cases, OEM products end up in the market and can be bought by anyone.
- The difference between OEM and retail is that OEM drives come with no package or accessories. They come in a simple anti-static bag. Since OEM parts are destined for OEM system manufacturers only, this may seem a disadvantage for the end user.
- The main advantage of OEM hard drives is their price. Since they come with no packing or accessories, the price is usually lower. Since the quality of the products is the same, OEM hard drives are preferred over retail versions.
- The downside of OEM hard drives is their warranty. All OEM products come with limited warranty from their producer, because the warranty is usually offered by the system builder. This again only poses as a problem to the end users who directly purchase an OEM hard drive, as they might find themselves with no warranty for their product.
- OEM hard drives are used by companies that assemble computers. They buy the hard drives, put them into PCs and then sell the entire PC under their own brand. This is how computer builders obtain high-performance parts with lower costs.
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