Switch Mode Power Supplies (SMPS) differ from diode rectification primarily in their operation; SMPS uses a switching device to convert DC voltage by turning it on and off, while diode rectification involves allowing current to flow in one direction during half of an AC cycle. SMPS can function as a DC-DC converter and may include a diode bridge if the input is AC, allowing for isolation through transformers. In contrast, diode rectification does not involve energy storage elements like inductors or transformers, which are essential in SMPS for voltage conversion. The discussion highlights the technical differences in function and components between these two power supply methods. Understanding these distinctions is crucial for applications in electronics and power management.