----- Original Message ----- From: "Jim Green" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Friday, September 23, 2005 1:34 AM
Subject: HDDs


What is the difference between an OEM and a Retail version of a HDD -- for say a Seagate Barracuda 160gB -- except the ~$30.


Hard drive manufacturers sell a special version of hard drives to OEM's in bulk at a substantially reduced price. There is nothing different about this as the large computer manufacturers buy all components for price, not for endurability or customer benefit.

So what is the huge difference in the OEM version sold in bulk and what you buy at the store as an end user? The computer manufacturer and the hard drive manufacturer have a sweetheart deal that relieves the hard drive manufacturer of any warranty to the end user. Most computers have a one year warranty which includes all components, including the hard drive. The huge difference here is often the end user gets shortchanged on the hard drive warranty. If they have a smaller computer manufacturer who serves the customer above the profit margin, build their computer they could have a 3 year or a 5 year warranty on their hard drive. They do have to ask, of course. Although we smaller OEM's have the option to furnish 3 or 5 year warranty hard drives, most opt for the 1 year warranty hard drive. Again, the "buy low and sell high" rule applies, padding the profit margin to the hilt.

Let me make it crystal clear that a 3 year or 5 year hard drive warranty is offered by the hard drive manufacturer, not the computer builder, unless the computer has a warranty longer than 1 year. This means the end user is responsible for obtaining an RMA from the hard drive manufacturer and returning the drive unless the business who built their computer is willing to service the hard drive warranty. I service the hard drive warranty only if I sold the hard drive. If the customer furnished their own hard drive for their new computer, the hard drive manufacturer bears the responsibility to replace it under warranty.

When you read in Maximum PC Magazine allegations of Intel paying Dell to stay exclusively Intel etc. you realize that sweetheart deals made by hard drive manufacturers to computer manufacturers is only a part of the overall plan. Since most people consider only the bottom line, we smaller computer manufacturers are being shoved out of business the same as Wal*Mart caused thousands of smaller stores to have to close due to a lack of customers.

To simply matters, an independent computer repair shop can not exchange your OEM hard drive unless they are an authorized service center for your computer manufacturer. You have to rely on the computer manufacturer or their authorized agent, no matter how far they send you or require you to ship your computer for repairs.

I have no idea if the Seagate hard drives with a 5 year Seagate warranty I purchase from my supplier, ASI are technically considered OEM drives or not. Neither ASI or Seagate knows if I use a new hard drive for repairs or building into a new computer. None of my 5 year warranty Seagate hard drives are labeled "OEM - To Be Installed In New Computers, Only."

The point here is you do have the option to view each of the approximately 10 different components in the next new computer you plan to purchase individually. This means it does matter if everything is under a 1 year or 3 year warranty or you can have portions of your new computer under an even longer warranty such as 5 years.

What is the difference between an OEM and a Retail version of a HDD -- for say a Seagate Barracuda 160gB -- except the ~$30.

Since you realize this issue is large enough to involve a $30.00 price difference, you may as well investigate for yourself and learn whose pocket the $30.00 that is saved goes into when you purchase a computer with the cheaper OEM hard drive.

Chuck

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