The Difference Between OEM and Retail Versions of Windows Operating System

We’re betting our Christmas dinners that not many people aren’t aware that there’s such a thing as an OEM version of Windows OS and Retail version of the same Windows OS, let alone the difference between the two.

So, what is the difference?

OEM is short for Original Equipment Manufacturer. This is the Windows operating system with its license referring to the installed Windows OS on pre-built and manufactured computers, laptops, and some tablets for sale to consumers in stores or online. For this reason, it’s very likely that the Windows you’re using right now is OEM. The primary limitation for this version is that you cannot install this same system and its same license key on another computer, even if you uninstall it from the original computer first.

Many people find this very impractical, and may even feel that it’s very restrictive, but the manufacturer saves money on a bulk number of licenses by accepting that restriction and passed their savings on to you. And this works out for most people most of the time. It’s rare that someone would benefit from the ability to transfer their Windows installation given that a new computer purchase usually comes with a new OEM license.

The Retail version of Windows operating system is a retail license for the need for installation on multiple computers. It’s usually sold as a single installer that can be installed on some 3 or 4 or more computers. It’s only available as a standalone purchase so if you’ve bought a copy of Windows on its own, separately from a computer, then you have this version. To be clear, though, the OS can still only be installed on one computer at any given time. This means that, for instance, if you decide to upgrade, you can buy a computer with no OS, uninstall your retail version of Windows from the old box, and install it on the new one. It’s a way to save money if you know that you’ll be sticking with Windows long term. Another advantage of the retail version is that if you have different devices, say a PC, a laptop, and a PC, all you need to buy is a single Windows OS installer to install Windows in all three. You don’t need to buy three separate installers.

Another difference between the two is that OEM copies do not come with any support from Microsoft. If you need to call Microsoft, you must pay a fee to do so. Retail copies come with a phone support. To be clear, the free upgrade to Windows 10 is for lower versions starting with Windows 7, regardless of whether the OS is OEM or retail. However, the free upgrades were only until last July.