What is the difference between OEM and ODM

OEM is the Original Equipment Manufacture (OEM), it refers to a way of “foundry production”, its meaning is producers not direct production product, they use their mastery of the “key core technology”, to be responsible for the design and development, control sales “channels”, specific processing tasks to other companies to do the way.This way is a common phenomenon gradually emerging in the world after the development of the electronic industry, which is adopted by major international enterprises such as Microsoft and IBM.

OEM is in English the Original Equipment Manufacturer, according to the literal meaning, translation should be according to Original Equipment manufacturers, refers to a Manufacturer according to the requirements of another Manufacturer for the production of products and accessories, also called token or authorized OEM production. Can on behalf of the sub-contractor machining, can also represent the subcontract processing. Domestic habit called collaborative production, three to processing.

The more OEM customers you have, the higher your market share will be.

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At present, when a manufacturer wants to extend its own brand, there are three roads in front of it: either do it yourself;Or merge some related companies;In practice, most enterprises tend to adopt the third approach.

ODM is a product designed by one manufacturer may, in some cases, be preferred by manufacturers of other brands, requiring the latter’s brand name for production, or slightly modifying the design (such as the position of the key) for production.The biggest advantage of this is that other manufacturers reduce their own development time.Some people are accustomed to calling these products OEM; they’ll actually be called ODM.For example, some Japanese brand laptops are actually made by Taiwanese manufacturers.After the event, Taiwanese laptop makers could mass-produce laptops under their own brand names by modifying certain design details or accessories.The reason is that they make odms for these Japanese brands, not oems.Of course, we can say that they are all produced from the same production line.

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Post time: Aug-22-2019