With regard to the reference to auto parts, OEMs refer to the manufacturer of the original equipment, i.e. parts mounted and installed during the construction of a new vehicle. On the other hand, aftermarket parts are those manufactured by companies other than the OEM, which could be installed as a replacement after the car has left the factory. For example, if Ford used autolite ignition candles, Exide batteries, Bosch fuel injectors and Ford`s own blocks and heads when building a car, authors and collectors consider them OEM parts. [Citation required] Other parts of the brand would be considered after-marketing, such as champion ignition candles, DieHard batteries, Kinsler fuel injectors and engine blocks and BMP heads. Many automakers sell parts through several channels, for example to automakers for their installation in the construction of new cars, to automakers for resale as automotive spare parts, and to merchandising supply chains. Each specific brand can be OEM on some vehicle models and after-sales on others. The VAR generally works closely with the OEM. The OEM adapts designs to the specific needs and requirements of the VAR company. IBM is an example of a company that is a supplier to the OEM market.
IBM is also an OEM on its own, because IBM uses parts of other companies in some of its own products. There are several computer equipment manufacturers that use their own branded products and are able to obtain significant revenue streams by reselling this product or significant parts of the product to OEM companies that are competitive in the same market. Microsoft is a popular example of a company that exposes its Windows operating systems for use by OEM computer manufacturers through the pooling of Microsoft Windows. OEM product keys are cheaper than their retail counterparts, mainly because they are purchased in large quantities, even though they use the same software as retail versions of Windows. They are primarily designed for pc equipment manufacturers and systems manufacturers, and as such are generally sold in volume licensing agreements to a variety of manufacturers (Dell, HP, ASUS, Acer, Lenovo, Wistron, Inventec, Supermicro, Compal Electronics, Quanta Computer, Foxconn, Pegatron, Jabil Flex, etc.). These OEMs often use a process known as the Locked Pre-Installation System, which preactivates Windows on PCs that are intended to be sold on mass distribution. These OEMs typically include software that is not installed in Windows stock on Windows images that are provided with their PCs (appropriate hardware drivers, anti-malware and maintenance software, different applications, etc.). One of the most fundamental examples of an OEM is the relationship between a car manufacturer and a spare parts manufacturer. Parts such as exhaust systems or brake cylinders are manufactured by a wide variety of equipment manufacturers. The OEM parts are then sold to a car manufacturer who assembles them in a car.
The finished car is then sold to car dealerships for sale to individual consumers. Individuals can also purchase "System-Builder" OEM licenses for personal use (to include virtual hardware) or for pc sales/resale they are building.