What is OEM?

OEMs are companies which manufacture products based on the product design and specifications provided by their client. The client does all the market research, R&D and develops its own product. But it does not have the manufacturing capability to fulfill the market demand in time, especially if its market is spread across the globe. So it turns to an OEM to do the manufacturing on its behalf. For example Apple spends millions of dollars on R&D and design and creates its own line of products, but gets the products manufactured by Foxconn. In this case Foxconn is an OEM (actually, world’s biggest OEM vendor). Foxconn doesn’t control the product design or it’s specs. They just manufacture them based on the details provided by Apple.
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