OEMs and contract manufacturers differ mainly in terms of control, intellectual property ownership, and design responsibility. An Original Equipment Manufacturer (OEM) produces products based on a client’s exact design, with the client keeping ownership of the brand and intellectual property. In comparison, a Contract Manufacturer (CM) typically manufactures parts or complete products according to the client’s specifications, while the client keeps control over the design and production requirements. In many situations, contract manufacturing is part of an OEM relationship, where the CM acts as the production partner or factory, and the client is the OEM.