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The difference between OEM and Retail when buying computer components

I may be in the process of learning a not-inexpensive lesson here, and I wanted to share it with others in the hopes that you may avoid my pitfall.

There are two ways to buy most computer components. You can buy full retail boxes, which are exactly as produced by the factory for the part’s manufacturer, or you can buy an OEM part. OEM stands for Original Equipment Manufacturer, which is someone who builds systems and buys that part to include in their system for resale. Sometimes the discount places on the web get batches of these OEM parts from OEMs who bought too many. In these cases, these discount places resell these parts to you, the end customer, at a price lower than the retail price.

The problem with that, as I’m finding out, is that the warrantee for these parts is sometimes sold along with the OEM part to the OEM. So when that part dies, you have no one to go to for a warrantee replacement. This is bad.

I had a hard drive die on my last week, and it was only about 6 months old, well within the warrantee period. Unfortunately, I bought an OEM drive, and the original drive manufacturer no longer claims any responsibility for that drive. I’m contacting the place where I bought it now to see if they’ll replace it for me, and I have no idea if they will or not. Time will tell.

Either way, be aware of what you’re buying. I’m pretty sure I’m only buying retail boxes from now on, just for the peace of mind. It’ll cost a few more bucks, but that money is insurance against something going wrong later.

— bab

 

posted on Tuesday, March 15, 2005 1:54 PM

Feedback

# re: The difference between OEM and Retail when buying computer components 10/9/2007 3:39 PM seo

Great job. You say clearly.

# re: The difference between OEM and Retail when buying computer components 1/8/2008 9:32 PM Clorence

What about software? What kind of warranties exist on software and if you register with this software, would you receive the same coverage/warranties as with Retail?

# re: The difference between OEM and Retail when buying computer components 3/15/2008 6:50 AM Cyn

That is not true. Most large OEMs (HP, Dell, Gateway, Sony etc..) guarantee you whole machine against hardware failure for at least 1 year unless you bought it used or refurbished. The smaller OEMs set a time limit on how long "they" will replace a defective part before you have to deal with the manufacture. Today 99% of all new hardware is guaranteed by the manufacture for at least 1 year.
Example: If you bought a new computer with a Seagate Hard drive in it from a local OEM and they warrant the computer for 1 year but in year 4 the hard drive fails, Seagate the manufacture will replace it because there warranty is for 5 years. However, that same hard drive in a large OEM computer will not be warranted by Seagate but only what that OEM stated when you bought it. Why? Because large OEMs buy at a ridiculously low rate because the manufacture took out the cost of warranting the products. Your local OEM or system builder will pay a higher price for the same product with the manufactures warranty.
Software is a little trickier. Especially, operating systems, and antivirus. The manufacture wants the OEMs to warrant it forever, but most OEMs will set a time limit like "free support for 30 days or 90 days etc...After that it is up to the customer to get in touch with the manufacture for support on defective software or "how to" stuff. Think about it even if you bought a retail version of vista at Best Buy, they will tell you to contact Microsoft for your woes or charge you and if Microsoft has to give you lessons to use the software they will charge you.
Retail boxes simply put gets you past the "how to" portion of an installation or how to use it. The large OEMs will only warrant the product for 1 year unless you pay them more money for a longer warranty. The smaller OEM (your local computer store or system builder will warrant your product after that the manufacture’s warranty will take over. The trick here is to make sure you are buying “NEW” not used, refurbish, open, recertified, and certainly not at a fair where the price is unbelievably low.

# re: The difference between OEM and Retail when buying computer components 6/17/2008 7:43 AM shop

correct...guarantee 1 year...but i think they should extend it..

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