What, exactly, does OEM and Open Box mean?

Question

I'm usually good with this type of jargon, and, I have a general idea of what they both mean, but...I want to be sure. I'm about to buy some computer parts from new egg. Don't want to buy the wrong thing. :)

I know the basics, but, if anyone could give me a little more...that'd be AWESOME.

and in both OEM and Open Box...are the software products included?

Answer 1

I agree with fnky above.

I disagree with Lavender's novel for two reasons:
1) It's a novel! (you freak)!
2) She assumes you're talking about Microsoft Windows, but you never said that. She ignores OEM "hardware".


In general, just know that OEM is generic and comes without any real support from the manufacturer. The warranty is usually still the same as a retail version, however. But if it's a hardware product and something happens while it's under warranty, you have to return it to the place you purchased it from and not straight to the manufacturer.

Open Box has been nailed in just about every post. Newegg's policy specifically states that you can return it within 15 days if it's a dud. However, beyond that there are no warranties of any kind. That's the only real risk. Evey Open Box item on there has been opened by a customer and then returned for one reason or another.

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Update in response to yours
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As for containing accessories, Newegg says:
"Please do not be upset or surprised if an open box product does not contain any cables, manual, software, drivers, fan, et al. Newegg.com will not send you any missing accessories, even if it is an essential part."

OEM is usually better. It will come with what's essential for the product to run. Sometimes, it will even come with software and a driver disc. I've purchased quite a few OEM DVD burners from Newegg that came with software. However, there's no guarantee in that arena either. You should read the fine print in the product description before buying.

Answer 2

OEM means "Original Equipment Manufacturer"......Open Box means that it was purchased, opened, and then returned.

Open Box could still be an OEM item, however, the general rule is that it was opened and someone had a problem with it (it didn't work or wasn't compatible).

So, some Open Box items could be a great deal, but others may just end up being a coaster.

Answer 3

OEM means it came from the original manufacturer, meaning it's the same exact thing that would be in a new system, i.e. not a third-party product.

Open Box means it was bought, the box was opened, and it was returned. (Sometimes it means the box opened during shipping.) Usually the implication is that the product itself wasn't used, or only used very slightly. But it's bad form to sell an opened box as new. Open Box typically would also imply that all the expected pieces are inside (or guaranteed to be).

Answer 4

OEM = Original Equipment Manufacture
Open Box means the box is open or it is a returned/exchanged item.

Answer 5

Although the first couple posts are right, let's explain what they mean since that's what you asked...

In addition to what the initials OEM stands for, the purpose of an OEM product is so that the manufacturer or developer of that product can sell it cheaper than a retail copy. How? Simple. They won't provide customer support. Instead, they sell it cheap to "Certified" distributors such as Newegg who is responsible for support. Most OEM distributors will tell you though, that they don't provide any support and that's their choice.

HP and Dell, for example, distribute OEM copies of Windows on their PC's. That's why you can't bug Microsoft directly when you need help. Instead, you have to call HP or Dell for support.

As for Open Box...

The meaning varies a bit from place to place. Why don't you just read what Newegg has to say:
http://www.newegg.com/ProductSort/CategoryList.asp?Type=OPENBOX&name=Open-Box

[scroll to the bottom of that page]

Answer 6

Open box are usually demos or returns, and usually come without accessories.

OEM means Original Equipment Manufacturer.

Answer 7

Newegg.com offers a 15-day refund-only return policy for all open box merchandise. Remember if you purchase a Open Box product you will receive an OEM BAREBONE item, meaning you will only receive the item itself. Accessories are NOT INCLUDED with Open Box products, even if the missing accessory is required for the item to function properly.

I reported this to one of your guys some time ago. I am in the Microsoft Partner Program due to being a small systems integrator and purchasing the Action Pack subscription. After my purchase I reviewed their "presentation" on the OEM Toolkit.

Essentially the reasoning goes like this. You can swap out anything in your computer except the motherboard and you don't have to buy a new license. If you replace the motherboard you must repurchase Windows.

Their reasoning is that as an OEM, when the system changes, you can't be expected to support it. So, an OEM that sells a computer and puts on a copy of Windows XP OEM then months later the motherboard is replaced you must purchase a new license.

Their reasoning is that the person that sells you the new mobo is now the OEM and hence you can't be expected to support it.

Essentially, it is one of support. If you change your hardware that dramatically it no longer is the same machine. Since OEMs support Windows when the OEM license is sold with the hardware, well, I think you understand.

There actually is another time when you must purchase a new license. That's when you change your computer case. The reason is the sticker. Since the OEM license requires the sticker be placed in a visible place on the outside of the case, and the fact that it is against the license to remove the sticker, you must purchase a new license to remain legal.

This is a stealth requirement. It is the same computer but a different case. It is the same lines of code, etc. It is unreasonable. Microsoft devised this as a method of forcing more purchases, even though the OS is exactly the same.

The same goes for the replacement mobo. It isn't the OEM that is required to purchase or replace the OS. It is the consumer. So, even if the consumer doesn't care about support they are still legally bound to do it. There should be no reason for this requirement. As well, it impedes agreements between the OEM and the customer by forcing Microsoft's idea of support on the product, hence impeding free enterprise.

The only way that I know of to overcome this is to purchase the retail version. So, as a matter of course I never purchase the OEM versions.

Unfortunately Microsoft provides only OEM licenses to the Action Pack subscribers, and hence if I upgrade a computer inhouse I lose one of the licenses. At least that's the way it looks.

Frankly, IMHO, it is a con. Essentially, it is theft. It should never be up to Microsoft to force decisions on a customer and if their basic license was reasonable to begin with (over-inflated prices due to their monopoly) then customers would not have this quandary. If the OEM decides to support a license on a replaced MOBO Microsoft should not be able to thwart that.

Name supplied



Note that the restrictions only apply to OEM licenses. Owners of *retail* Windows licenses may reinstall on entirely new machines if they want to, again and again, as stated in the EULA. And of course holders of retail Windows licenses can also replace bits at a time, including motherboards. They might have to call in for activation, but there's no grounds for turning them down.

Cheers!



I just recently experienced this very situation. I had to replace a bad motherboard in a friends PC. To my surprise, when I powered it up, I got a dialog box that said that I had to register Windows. The mother board that I installed has the same chipset and all the same features of the one that it replaced, but it was produced by a different manufacturer. With it being so similar, I was surprised that it asked me to register Windows.

I ended up having to call the toll free number posted on the dialog and I explained that the motherboard died and when I replaced it the OS said I had to register it. I was asked if the OS was installed on any other PC's, I said "no", and no further questions were asked. I was given the activation number and all was fine.

So, it would seem that if you do upgrade your PC with a new and improved motherboard, if you tell M$ that your old mobo died, they don't seem to give you any hassle about reactivating the OS.

TG



OMG, where does this end? Between HDCP, the RIAA wanting to make ripping a CD illegal and now this, how far are these companies going to go? Pretty soon I won't be able to move RAM from one PC to another. How do we stop this rampant greed if their are no viable alternatives(at least as far as Microsoft, I can stay with regular DVDs and refuse to buy a lot of music for the other DRM hellish plots)?

Keep up the vigilance. I just wish the average consumer would read your site.

Name supplied



Presumably this .doc paragraph means that every tester on the net has to buy a new licence when comparing motherboards. No wonder MS makes such a large profit.

Brian



Funny that, I just updated the motherboard drivers on my new computator and was told that too many changes had been made to my system. One quick (ha ha) phone call later and I was issued a new product key to reactivate my machine. Thank you microsoft, love you to.

Ducky



Just to let you know, I upgraded my motherboard about two years ago, called to activate my copy of windows, and told them why i reinstalled (the new motherboard) and they said I needed to buy a new licence. So this policy has been in effect for far longer then you thought.

It was actually quite funny, after getting into a heated debate, (they kept reminding me that they were recording the conversation - i kept reminding them that i hoped Bill himself heard how terrible they were at their job) I hung up the phone, called back, and I told them I was reinstalling because of a crashed hard drive. Bam, Windows activated, no more hassle. If you ask me MS couldn't promote piracy any more, especially when I see my friends running illegal copies of windows that don't need to be activated by grumpy phone managers or activating at all for that matter.

Having the no hassle pirated version seems a lot more appealing then dealing with the pain in the *** legal one.

Mark



Future PCs become complete opaque

Since when does talking out of your **** with biased and half-baked opinions, become "analysis" ??

If you want to offer an opionion, do so... because then we can all ignore it... but if you are going to label something as "analysis" let's see the analysis.

You guys are just full of it and full of yourselves.

Too many 'evil empire' conspiracies and too much slash-dot style bias.

Get your act together and stop trying to pass off personal opinions and heresay from you best mate, as 'News, reviews, facts and friction'.

Wally Stiller



Wow nice article, I totally agree. I've found especially over the last 4 years (since about 2002) that things have become particularly bad. I find that the Tech Corps put a lot of effort to intentionally confuse end users and techs as well. I have 2 diplomas one in Electronics Engineering and Computer Networks Engineering and I often get into heated discussions about almost anything. I learned the science behind the tech as well as the tech. often manufacturers know that science is not a simple thing for people to even grasp let alone understand and they use it to their advantage.

For example I recently had an argument that now-a-days power supplies are designed (this is in Canada, 120V) for 90V to 120V and brown outs does not affect PSU at all. Being that I actually had to create a current/voltage limiting power supply to graduate I kind of have some inside knowledge of how its done. Having the ideal with make electronics last much longer and the fact that not every single PSU that goes out the door gets tested, this being said it is easy to see that the odd PSU out there will be easily affected by lower than ideal power (that doesn't mean that the ones who get test are any better). Anyway I left it at a stalemate but as you can see people believe advertising over science. Without science we would not have computers so computers obey the laws of science not advertising. So I often have heated discussions with people who have taken a "tech" course and think that because they can build a PC that they know how to design one. Well I'll tell you I've taken circuit design and it is not a simple undertaking and there is a whack load of things to consider when making the design. Price is and will always be the first thing on the list when considering to mass produce.

Anyway I find people are being overwhelmed by all the stimulus they get today and it seems people are just closing there minds and not accepting anything new. People get stuck in a mode and never look back. I read your site to get an insight on who is doing good at the moment and buy from them. One good example is Asus, I used to be an Asus freak for a long time but I had 3 motherboards in a row that had a pile of little problems which most of the time would not cause any issues but as anyone in tech will tell you, it always happens at the worst time. The 3rd Asus board I had bought at the time Asus was extremely picky on the type of RAM (and I was not overclocking, I was just trying to get it to work) and I had to buy one of the most expensive memory at the time, the 4th asus board I had was X.X.1 off from being to support an upgrade (this may not mean much to most people but like I said I know electronic design, not that I'm great at or anything but I know it and this tells me that they didn't design properly to begin with and for that board specifically they had about 5 revisions of the same model which is bad from a support point of view and marketing). Finally the last Asus board I had just outright failed for no rhyme or reason, and it was conveniently about 1 month after warranty was done.

Now I hear people always talk about how Asus is the best but from my experience I've learned to read as much as possible before I dump money in anything. Now I use MSI, not the fastest but reliable, extremely compatible and very competitive prices. Anyway I appreciate this article very much and appreciate the "Reality slap" your giving people. Thanks and keep up the great work.

Daniele Bastianello



8086 computers with tape drives? That's so 1984! I remember buying an IBM XT in 1997 as a semi-collectable, only to toss it a few weeks later. I think the situation has been muddled up since the Pentium 4 came out.

Time was we had Pentium IIIs and Athlons, and most of us were running Windows 98 and using PC-133 SDRAM. The world was simpler then, easier to figure out, at least as long as you didn't try using USB. Then comes the P4 and use-it-or-else RDRAM. Then Athlons went to the XP rating system, and Pentium 4's went first back to SDRAM, and then to DDR Ram.

Today, it's so confusing I have to carefully read up on whatever I buy to make sure it'll all work together. The days of DDR-400 Ram that wouldn't work with more than one stick are long gone, but do I really want a quad core Athlon SLI setup with Socket AM2, or would I be happier with a 900 series dual core Pentium-whatever with a single PCI Express video slot?

The potential for a dynamic future is here, I've never seen so many electronic gizmos available that would have put James Bond to shame. Luddites can now even take their pictures, print, and store images without a computer.

I can save files to flash drives that are bigger than the hard drives of a few years ago, and the once exotic wireless networks are now everywhere. If I'm paranoid, I can set my house up with a wireless camera system that's as good as any suspense movie.

So what's holding it back? Too many people wanting their piece of the pie, or pushing their proprietary formats. And at the center of it all is the hate-it-but-use-it Windows, soon to come in 64 flavors and eight syrupy shades. It's too much, stop the Planet of the Apes, I want to get off!