What’s the difference between OEM and SI PCs? A build master explains

We here at PCWorld, we encourage you to try building your own desktop computer. It’s fun! It’s economical! It’s only very slightly likely to lead to your destroying fragile parts worth hundreds of dollars!

All joking aside, sometimes buying a pre-built computer just makes sense. But what’s the difference between a PC sold by an OEM and one sold by an SI? We asked an expert, YouTube build master Braethorn, to break it down for us in the latest PCWorld video.

First, let’s define some terms. OEM stands for “original equipment manufacturer,” and in the PC market it refers to companies like Dell, Lenovo, HP, Acer, and others — huge corporations that generally sell hardware all over the world but don’t make everything themselves.

OEMs sell desktop PCs (and other designs like laptops and monitors) under their own brands, but generally buy wholesale parts from other companies, like Intel and AMD for processors, Asus and Gigabyte for motherboards, Seagate for storage, etc.

OEMs buy hardware (some of which is designed specifically for them) in huge bulk lots, then assemble them into PCs in their factories, load up software like Windows, and package them for sale at retailers. Though the hardware has evolved, this basic process has been going strong for basically the entire modern era of personal computers.

On the other hand, SI stands for “system integrator.” Technically, a system integrator does the exact same thing — buys parts in bulk from other companies, assembles them into a working PC, and sells it to consumers. So, why the separate name?

The difference between an OEM and an SI is subtle, but can be nailed down by a couple of factors. For starters, OEMs are generally huge corporations that serve multiple international markets, whereas SIs tend to be smaller, more boutique PC makers. (Think Falcon Northwest, Origin, or iBuyPower.) With smaller output volumes, these companies focus on more powerful, more expensive, and higher-margin desktop designs.

Another crucial distinction is that even though an OEM mostly gathers hardware from other companies, it still makes a few components itself. OEMs are usually also laptop manufacturers, so they have the resources and supply lines to manufacture some parts themselves, most notably PC cases. Large manufacturers also often get entire product lines — like motherboards, cooling systems, and power supplies — manufactured exclusively for their specific designs. Sometimes these custom-made parts don’t conform to standard sizes or layouts, and they can cause headaches if you’re trying to upgrade or repair a PC.

That isn’t the case for SIs. Even if these smaller companies are buying parts in bulk, they’re generally the same PC parts that are available to you as a solo builder at home. Even the PC cases used by a system integrator are generally the same ones you can buy “off the shelf,” though they might have a little extra branding.

Technically, all OEMs are system integrators, but all system integrators are not OEMs. But when PCWorld and other tech media refer to OEMs, we mean big companies like Dell. When we talk about system integrators, we mean smaller companies, especially those making PCs entirely from parts that are available directly to consumers.

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