Today we will discuss OEM and ODM, Know how the product or gadgets are made in the electronics world, Who are the original manufacturer, the original design creators, And how you get a re-branded and copied phone handset.
Not all companies make all of their products. Suppose you have a Samsung phone, do you think that all the parts of the phone have made sense? Again, you have Lenovo’s laptop, do you think all the parts of the laptop have made Lenovo? Hold on to you again has an iPhone, do you think Apple has made their factory? Here are two main concepts to know, one is Concept of OEM and Concept of ODM.
OEM – Original Equipment Manufacturers:
Lets first discuss with OEM. Suppose you have to make a product, a simple sound box, Smartphone, monitor, motherboard or anything like that. But you do not have the facility that you can build them, but you have a complete idea and full concept and know how it works.
You are doing research on your team product including, simulating the labs virtually designed, or you have created a sample copy. Then you gave it to another company to make the product in a bulk amount.
For Example, you want to make the wooden chair, you know how the design how chairs will be. You give furniture shop with your concept and say to make 10 chairs as per your requirement.
Customers provide design, specification, product IP, ownership and control of the design. In OEM, another company makes the product on in the exchange of money.
For example, Foxcon is the Apple’s OEM that makes all of Apple’s products. All the concepts including design are Apple’s, Foxcon Just manufactures. This is basically the concept of OEM. Sometimes the OEM is works differently, For example, MediaTek’s is the processor of your device, In this case, the processor’s OEM is MediaTek.
ODM (Original Design Manufactures):
Let’s now come to the concept of ODM. Suppose you have ideas for your product but you do not have the design. You go to a company and tell your idea, ask them to make the device or product what it would be like to create. Then the company or ODM will tell you yes we have designed this or the product can be like this. this way they will showcase various designs in front of you.
Then you will order if you like, Then you will give that logo, the box that will give you the motherboard, they will produce the product and give it to you. But there is no control or ownership of design here. All the patents of the design will be transferred the ODM. For example, we can name of Quanta, they produce laptops like Dell, HP, and Lenovo.
Now Dell will make their Inspiron model’s new laptop, here they cannot take any decision on themselves. They will have a meeting with Quanta to tell them, look at this idea of us, now you say how it can be made. Then the Quanta laptop is ready, Dell is marketing it.
Rebound and Copied Products (ODM Products):
The concept of a copy or a rebranded phone. What actually happens there. Your company needs a new phone, do you want to go to any ODM? They will show you a complete catalog like a restaurant menu, then say we have this phone, this is the specification. you say what you need? Now, whatever you like, they will deliver the phone as soon as you want.
But here is the R & D or the topic of research and development, that is not being done on the client side. Apple is now making its own process making from Foxcon, Samsung also doing the same.
client side. Apple is now making its own process making from Foxcon, Samsung also doing the same.