Industry Terms

This page contains a list of industry terms and their meanings that describe the condition or packaging of an item. This information is based on my experience of buying and selling computer equipment in various conditions.

OEM Packaging - OEM stands for Original Equipment Manufacturer. OEM packaging means the item does not come with a colored retail box or any accessories. For example, an OEM packaged hard drive would just be the bare hard drive itself without the retail box, drive cable, or mounting screws. This is often compared to Retail Packaging which is essentially the opposite of OEM packaging. Another thing that can be different is the warranty terms on the item. For OEM packaged items, the warranty period is sometimes less than retail packaged items. Any problems usually get handled through the dealer rather than the manufacturer.

Open Box - This is simply an item that was returned with its packaging open but with all the contents included. The item may have been slightly used before returned. Some open box items are returned to the manufacturer and marked as refurbished.

Refurbished / Reconditioned / Remanufactured / Recertified - These terms are used interchangeably. They can mean one of several things about the item:

• The item was returned to the manufacturer because of a defect. It was then repaired, tested, and repackaged like new.
• The item or the item's box was damaged during shipment and returned to the manufacturer. Most of the time, it is just the box that is bad so the item is just repackaged.
• The item is new, but overstock. The box and/or item just gets a refurbished label slapped onto it.

It should also be noted that repaired items may be scratched, cracked or dented. These blemishes are usually not fixed unless they are serious since it does not affect the overall operation of the item. Also, the item may be packaged in a generic box.

One of the advantages of buying refurbished items is that they are tested prior to being resold and are therefore less likely to arrive with a defect as compared with new items that do not get tested. An exception to this would be overstock. I do not believe they get tested.

The warranty on refurbished items is usually 90 days on up.

Retail Packaging - This is where an item gets nicely packaged in a colored retail box with accessories. For example, a retail packaged CPU would also be bundled with a fan and heatsink. This is essentially the opposite of OEM Packaging. For retail packaged items, the warranty period is sometimes longer than OEM packaged items. Any problems can be sent directly to the manufacturer as compared to OEM items which may be restricted to going through the dealer only.