The Oscar Schmidt Company was founded in 1871 and incorporated in 1911. By the early 1900s, the company had five factories in Europe and a factory on Ferry Street in Jersey City. They made all kinds of stringed instruments, guitars, banjos, mandolins, ukuleles, zithers, and Autoharps. The company prospered through the early 1920s. Oscar Schmidt instruments were sold in many rural parts of the country where no music stores existed. Salesmen distributed the products far and wide, making them available in general, small town furniture and dry goods stores. Country guitar pickers and blues musicians living in areas of the South and in Appalachia, far from the city, frequently played Oscar Schmidt instruments because they were both inexpensive and available locally.

Today the Oscar Schmidt brand is part of U.S. Music Corporation which also owns Washburn Guitars, Parker Guitars, Randall Amplifiers, Jay Turser Guitars and Profile Accessories.