What are the original equipment manufacturers (OEMs) and mobile network operators (MNOs)? You may have heard these two abbreviations a lot. Now we will give you detailed information on this subject.
What Are the Original Equipment Manufacturers (OEMs)?
OEM means “Original Equipment Manufacturer.” It is the name given to a company whose goods are used as components in another company’s products and then sells the finished product to users. The second firm is called a value-added vendor (VAR). It adds value to the original product by increasing or including features or services. Manufacturers can reduce costs by partnering with OEMs. OEM products are less expensive due to their economies of scale. These brands, which are in the suppliers’ position, offer the parts that are excluded from producing a product and the features they make in their boxes and packages. Products sold with this method are called OEM products. There is no difference in quality between the original product and the OEM product. OEM products are usually sold in a simple box. We can say that they are not designed for store shelves. Many retail stores do not sell OEM products. Everyone should be comfortable purchasing an OEM product. OEMs provide components in another company’s product in cooperation with the finished product vendor as a value-added reseller (VAR). In the computer industry, OEMs can refer to the company that purchases the products and then adds or rebrands those products under their name to a new product. While OEMs focus on business-to-business sales, VARs concentrate on end-users. After 2019, many OEMs started making VARs by selling their parts or services directly to consumers. For example, people who want to build their computers can purchase their graphics cards or processors from retailers that stock these products.
Often in the computer industry, OEMs can refer to the company that buys products and then incorporates or rebrands them into a new product under its name. For example, Microsoft provides Windows software to Dell, which sells a PC system directly to the public. In this case, Microsoft is an OEM, and Dell is a VAR. OEM is the opposite of the aftermarket. An OEM refers to something made for the original product, but aftermarket relates to equipment that a consumer can use as a replacement made by another company. Consumers generally prefer cheaper and easier to obtain aftermarket products. But sometimes, aftermarket manufacturers are well-known to consumers as they specialize in a part.
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What Are the Mobile Network Operators (MNOs)?
The mobile network operator (MNO) is a wireless communication services provider that owns or controls all the items necessary to sell or deliver the services. An MNO generates revenue by offering retail services and can sell access to mobile virtual network operators. A mobile network operator (MNO) needs to have a radio spectrum license from a regulatory or government agency or control access. An MNO must have the necessary network infrastructure to serve subscribers over the licensed spectrum. A mobile network operator (MNO) can outsource systems or functions. Mobile network operators use user experience and history for secure authentication. Thus, Mobile network operators provide secure authentication and identification that users can trust. While MNOs protect their users’ privacy and personal data, users in their networks verify their devices and securely access services. As a result, mobile network operators (MNO) drive mobile revenue growth. Mobile apps and services are seen as an excellent opportunity for new revenue streams. However, MNOs are like iTunes and mobile platform providers like Apple. MAOs need to form alliances with platform providers.