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What is an Original Equipment Manufacturer (OEM)?

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What is an Original Equipment Manufacturer (OEM)?

A company which, with its own facilities, performs the primary activities in transforming inorganic or organic substances, including the assembly of parts and components, into the end item being acquired.

For commodities, an OEM is normally a company that builds a commodity product or component and incorporates it into a new product with its own brand name and derives at least 40% of its revenue from products that are manufactured by the OEM;

For managed services, an OEM is normally a company that derives at least 40% of its revenue from Data Processing, hosting, and related services;

For telecommunications, and OEM is normally a company that derives at least 40% of its revenue from wired telecommunications carriers