Origin of Names
Historically, some electric guitarists have reversed the normal meanings of the terms vibrato and tremolo when referring to hardware devices and the effects they produce. This reversal of terminology is generally attributed to Leo Fender and the naming of the Fender "Vibroverb" amplifier, which actually used tremolo (rapid volume changes) in an attempt to create a vibrato-like (rapid changes in pitch) sound. See vibrato unit for details of the history of these terms in relation to electric guitar, and related issues. Ironically, Fender had previously introduced the "Tremolux" amplifier in 1953, which used the correct terminology.
While the (so-called) "tremolo arm" can produce variations of pitch including what is normally termed vibrato, it can never produce the effect normally known as tremolo (modulation of volume). Tremolo, on the other hand, is exactly the effect produced by the electronic vibrato units built into many classic guitar amplifiers. Other widely used names for the device include "vibrato bar" and "whammy bar", the latter named in reference to guitarist Lonnie Mack's aggressive, rapid manipulation of the pitch-bending device in his 1963 song "Wham!".
Read more about this topic: Vibrato Systems For Guitar
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