What does OEM mean?

OEM is the abbreviation of Original Equipment manufacturing, which refers to a mode of "OEM", that is, producers do not directly produce products, but use their own "key core technologies" to design, develop and control sales channels, and hand over specific processing tasks to other enterprises.

This method is a common phenomenon that has gradually emerged in the world after the rapid development of the electronic industry, and it has been adopted by big international enterprises such as Microsoft and IBM.

Reasons for the rapid development of OEM in international trade

OEM is widely used in manufacturing industry, especially in the rapidly developing information industry. For example, according to the statistics of IDC (International Digital Group), an authoritative international statistical organization, more than 95% of the hard disks used by PC manufacturers around the world are provided by Seagate, Quantum and Western Digital in the form of OEM.

The reason why it can be widely used is that it meets the needs of the new competitive situation brought about by the rapid development of global science and technology since the 1990s. With its flexible and effective operation mode, OEM has adapted to the development of this new situation and has been widely adopted.