Gadgetory

thanks for watching tech quickie click the subscribe button and enable notifications with the bell icon so you won't miss any future videos so have you ever worked on a group project where you did all the work but you're lazy partner put his name on it too and got an easy a or maybe it would be more relevant to ask if you've ever written the paper that someone else paid you for well while the latter would get you kicked out of most universities for academic dishonesty something similar is actually a widespread and perfectly accepted practice in the technology industry I'm talking about the use of original equipment manufacturers or OMS so here's how it works think about the last time you visited a fast-food joint like McDonald's chances are if you walk around back you'll see some dumpsters and a few teenagers with nowhere else to be not a patch of land where McDonald's is raising its own cows growing its own potatoes and refining its own sugar for the soda fountain well I'm sure it seems obvious now that we mentioned it but McDonald's buys all that stuff from outside companies cooks it and then Marcus it as the Big Mac value meal that you happily gobble up the reason for this is that it's far cheaper and easier for them to outsource farming and even some other processes like baking buns than it is for them to build a thousand barns and raise millions of chickens by themselves so bringing this back to the tech world many of the companies that you think of as businesses that make electronics don't actually make electronics at all a great example of this is Apple Apple doesn't use its own factories to produce the iPhone rather they're all made by companies like Foxconn and Pegatron headquartered in Taiwan who used to spec's the Apple sends to them and indeed many different electronics are manufactured this way a design team at company a will come up with a product idea and design a schematic but then pay Company B to actually make it even though company B's name never shows up on the products you end up buying I mean can you imagine that the Foxconn iPhone X another thing that makes the iPhone such an interesting example is the fact that Apple could afford to build their own factories but they don't the reality is that supervising the process but leaving a manufacturing specialist to actually build the devices saves them tons of money they save on the upfront cost of building the facility they save on labor and they can leverage the supply chain expertise and the overall volley Bellus large manufacturers acquire raw materials in bulk at great prices remember Foxconn makes a lot more than just iPhones other manufacturers even take things a step farther and make their own product lineups without any speck from any outside company then sell these wholesale to companies who will slap their own badge on them and maybe provide a few extras like additional warranty support or aesthetic improvements this variation makes the manufacture of more of an OD M with the D standing for design and is a frequent practice with power supply brands for example to our knowledge ROS will and fractal designs aren't evolves for the technical design process of their own PS use at all instead buying and rebranding units designed by ODMs now to be clear this isn't me that they're bad at all and sometimes there can be a benefit see sonic for example both bills and sells their own power supplies but often their prices are higher than the brand's who are rebadging what is in some cases fundamentally the same units but Jon why do I keep hearing people refer to companies like Dell and HP as OMS when they use lots of third-party components and their pre-built computers well that's a good point maybe a better term would be original equipment assemblers but regardless people do use the term OAM when they're talking about companies that sell pre bills as well which is why om versions of Windows cost less although the software is the same that are meant for businesses that sell pcs and provide their own support to customers meaning Microsoft won't give you any warranty support if there's a problem well let's get back to our original definition though because OMS are so common in the tech world sometimes we'll see a problem affect many different brands because they were using the same OAM this was speculated to have happened during the infamous capacitor plague of the early 2000s when several well-known brands had widespread issues with faulty products due to bad capacitors provided by an outside manufacturer so if you really want to know what's inside that shiny new power supply or monitor you just bought do your homework and see if you can identify which OMS if any were used you don't want to get reeled in by a fancy looking box only to find out the gadgets inside were actually made by mr. 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