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thanks for watching Techquickie click the subscribe button and enable

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notifications with the bell icon so you won't miss any future videos so have you

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ever worked on a group project where you did all the work but you're lazy partner

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put his name on it too and got an easy a or maybe it would be more relevant to

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ask if you've ever written the paper that someone else paid you for well

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while the latter would get you kicked out of most universities for academic

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dishonesty something similar is actually a widespread and perfectly accepted

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practice in the technology industry I'm talking about the use of original

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equipment manufacturers or OMS so here's

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how it works think about the last time you visited a fast-food joint like

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McDonald's chances are if you walk around back you'll see some dumpsters

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and a few teenagers with nowhere else to be not a patch of land where McDonald's

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is raising its own cows growing its own potatoes and refining its own sugar for

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the soda fountain well I'm sure it seems obvious now that we mentioned it but

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McDonald's buys all that stuff from outside companies cooks it and then

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Marcus it as the Big Mac value meal that you happily gobble up the reason for

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this is that it's far cheaper and easier for them to outsource farming and even

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some other processes like baking buns than it is for them to build a thousand

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barns and raise millions of chickens by themselves so bringing this back to the

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tech world many of the companies that you think of as businesses that make

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electronics don't actually make electronics at all a great example of

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this is Apple Apple doesn't use its own factories to produce the iPhone rather

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they're all made by companies like Foxconn and Pegatron headquartered in

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Taiwan who used to spec's the Apple sends to them and indeed many different

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electronics are manufactured this way a design team at company a will come up

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with a product idea and design a schematic but then pay Company B to

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actually make it even though company B's name never shows up on the products you

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end up buying I mean can you imagine that the Foxconn iPhone X another thing

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that makes the iPhone such an interesting example is the fact that Apple could afford to build their own

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factories but they don't the reality is that supervising the process but leaving

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a manufacturing specialist to actually build the devices saves them tons of

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money they save on the upfront cost of building the facility they save on labor

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and they can leverage the supply chain expertise and the overall volley Bellus

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large manufacturers acquire raw materials in bulk at great prices

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remember Foxconn makes a lot more than just iPhones other manufacturers even

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take things a step farther and make their own product lineups without any

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speck from any outside company then sell these wholesale to companies who will

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slap their own badge on them and maybe provide a few extras like additional

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warranty support or aesthetic improvements this variation makes the

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manufacture of more of an OD M with the D standing for design and is a frequent

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practice with power supply brands for example to our knowledge ROS will and

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fractal designs aren't evolves for the technical design process of their own PS

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use at all instead buying and rebranding

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units designed by ODMs now to be clear this isn't me that they're bad at all

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and sometimes there can be a benefit see sonic for example both bills and sells

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their own power supplies but often their prices are higher than the brand's who

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are rebadging what is in some cases fundamentally the same units but Jon why

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do I keep hearing people refer to companies like Dell and HP as OMS when

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they use lots of third-party components and their pre-built computers well

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that's a good point maybe a better term would be original equipment assemblers

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but regardless people do use the term OAM when they're talking about companies

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that sell pre bills as well which is why om versions of Windows cost less

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although the software is the same that are meant for businesses that sell pcs

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and provide their own support to customers meaning Microsoft won't give

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you any warranty support if there's a problem well let's get back to our

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original definition though because OMS are so common in the tech world

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sometimes we'll see a problem affect many different brands because they were

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using the same OAM this was speculated to have happened during the infamous

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capacitor plague of the early 2000s when several well-known brands had widespread

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issues with faulty products due to bad capacitors provided by an outside

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manufacturer so if you really want to know what's inside that shiny new power

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supply or monitor you just bought do your homework and see if you can

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identify which OMS if any were used you

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don't want to get reeled in by a fancy looking box only to find out the gadgets

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inside were actually made by mr. Sebastian's budget PCB kitchen speaking

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