True Manufacturer of Laptop

People use laptops of various brands such as Compaq, Lenovo, and Toshiba. However, many people think that the laptop company itself manufactures the laptop they are using. However, it is not true that laptop companies manufacture laptops. The truth is the laptop companies buy laptops from Original Design Manufactures (ODM) and market them under the company name.

In real sense, the true manufactures of laptops are Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM). There are many such ODMs and OEMs like Asus, Acer, Arima and many more. Few exceptions like Apple and Sony manufacture their own laptops, and that too of nominal quantity.

ODMs and OEMs:

ODMs are the real manufacturers of laptop, as they design, cast and assemble the main unit of a laptop. The main units of a notebook computer include the motherboard, display and shell or outside casing. Collectively, the main unit is called the Barebone. Some examples of ODMs are Mitac, Clevo, Compal, and Quanta. Generally, people are unaware of these companies. However, people use their products under the name of a branded computer company.

Generally, the locations of these ODMs are in Asia and have their distribution centers in the United States. ODM centers send their products to Original Equipment Manufacturers (OEMs). Every ODM sells its laptop to various OEMs.

OEMs are those companies, which assemble the Processor, Memory, Optical Drives, Hard Drives and software programs. OEMs carry out the final assembly process and put the brand label (Brand Name) on the laptop. The company then sells the laptops to dealers or resellers or directly to public. Many companies such as Dell and HP have their OEMs in Asia. In short, laptop-selling companies like Lenovo, Compaq, HP, and Dell function as OEMs.

Quanta is the ODM of Lenovo, who is the maker of the ThinkPad series of laptops. Lenovo acts as an OEM. Earlier, LG was the ODM for IBM. After Lenovo Group took over IBM, they even changed their ODM to Quanta and till date have kept their ODM Quanta as constant. Lenovo did manufacture a very small number of laptops in the past.

Thus, the true manufacturers of laptops are not the laptop producing companies, but the ODMs. Hence, individuals reaping the benefits of using various laptops of different companies need to thank the ODMs, rather than the laptop company for manufacturing laptops. ODMs and OEMs are the backup, whereas laptop companies are just a selling source.

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