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Today's tip will cover the difference between the meaning of the labels "OEM" and "Retail" when it comes to computer software and computer hardware. Is there a difference between OEM and Retail versions when it comes to buying computer software and hardware?
If you're a person who is constantly shopping for computer software and hardware, I am more than sure that you have come across the words Retail and OEM at computer stores. Some people think "Why are these parts so cheap?" "Are OEM software of hardware the real thing?" "Will I get full support?" "Will I get the full warranty and service support?" The main question is why do computer software and hardware manufacturers release different versions of their product?
RETAIL - Retail versions of computer software and hardware usually come in a nice fancy retail box for commercial and advertisement purposes. They come with a full manual, full length of warranty (1, 3, 5 years, lifetime, etc), and usually include other accessories in the box as well. The main difference in the retail versions of computer products is that they are packaged to be sold in a retail store, HENCE, the label "retail". OEM (short for Original Equipment Manufacturer) - The OEM versions of computer software and hardware are often referred to or known as the "rundown" or "stripped down" version of their retail counter parts. OEM software is simply packaged in a CD in a thin sleeve and sold directly as is. No fancy box, labels, or other goodies that come with the retail version. OEM hardware is usually the bare hardware component wrapped in a plastic bag or static bag and package in a white box or brown if any. Because of the box color, you may have heard the term "white box" version for OEM hardware. OEM hardware will usually be missing driver CD's, installation manuals and other bonus cables or accessories.
OEM software and hardware are usually sold "naked" because they aren't meant to be sold to the end consumer which is the everyday people that buy computer products in online stores or retail stores. OEM parts are called OEM because they are meant to be sold to "Original Equipment Manufacturers". Examples of OEM's would be Dell, HP, Compaq, Sony, and other companies that buy these OEM versions of computer software and hardware to include in their computers. OEM companies usually buy mass volumes of OEM hardware to build and package these parts together to create their own computer to sell to the end consumer. Just like with hardware, they also install OEM software onto these computers. OEM-version software and hardware takes less space, and costs less money. The big OEM companies don't need to pay extra for the driver CD's because they have an automatic script or program that installs the software onto the computers automatically. They don't need to pay for the installation manuals because the customer will have bought the computer already pre-built and installed and further technical support will be provided by the OEM company and not the actually manufacturer of the equipment. They also have no need for the fancy box because the part will be used immediately and there is no point in paying extra for the box and paying extra for the higher shipping costs. The DIFFERENCES Between OEM and RETAIL - Physically, there are usually no differences whatsoever. You are getting the exact same product but for cheaper and without the fancy stuff which you'd probably have no use for anyway. Manuals and drivers can be downloaded online. Other accessories can be obtained elsewhere for usually much cheaper. The only differences that you will see most of the time when it comes to OEM and Retail hardware is the difference in length of warranty. For example, an OEM piece of hardware such as a CPU processor chip will come packaged in a small plastic box and include 1 year warranty, while the retail version will come in a bigger fancy box with a CPU heatsink fan and installation manual included and also a full 3 years of warranty. Cautions when buying computer software or hardware labeled OEM - There are many dishonest computer stores and sellers that have USED retail-versions of their hardware and software, but they will sell you JUST the CD or just the piece of hardware and claim that it is "brand new OEM". Also note that I do not recommend buying the extended warranty from a store. The reason for this is because the extended warranty is usually so much that you can easily replace the motherboard yourself in the future when the value of it drops as opposed to paying upfront for a part that you will likely resell long before it hits failure. My suggestion when deciding against OEM vs RETAIL versions of computer software and hardware - Always buy OEM software, it is so much cheaper and will function exactly the same! As for OEM hardware, I highly recommend against buying hardware that are high-dollar parts, system-critical or related to storing your data. In other words, always get the full warranty when buying hard drives, motherboards, CPU's, and feel free to get OEM version memory, cd/dvd drives, and soundcards.
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Hardware 
