Tuesday, March 9th 2010

Newegg Puts an End to Counterfeit CPU Saga

The controversy surrounding Newegg's shipment of counterfeit Intel Core i7 920 processors to some customers has finally met its logical conclusion, with Newegg disposing facts and making great headway in resolving the issue with affected customers. In a statement to HardOCP.com, Newegg said that it is conducting a thorough investigation in collaboration with Intel and law-enforcement agencies, to get to the bottom of how counterfeit merchandise could get into its supply chain.

Another major revelation here is that Newegg named IPEX as the supplier behind the merchandise, and not another supplier called D&H Distributing, which the media was fairly confident in alleging for this controversy. The said company earlier issued cease and desist orders to those media sources for misinformation and wrongfully dragging it into the issue.

The supplier, IPEX, had initially told Newegg that it had accidentally shipped "demo boxes", a keyword Newegg adopted in its initial press statement and communications to affected customers. In course of time, it was found out that these so-called demo boxes indeed were counterfeits. Newegg has terminated its business relations with IPEX. Sections of the media which named D&H Distributing in the controversy tendered their apologies.Source: HardOCP.com
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31 Comments on Newegg Puts an End to Counterfeit CPU Saga

#1
JATownes
Newegg hasn't lost my faith at all. I think they handled the situation with dignity and promptness. Their supplier is probably about to be in a whole lot of hot water for acquiring these from an unathorized source though.

Cheers to Newegg for putting the customer first. :toast:
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#2
DirectorC
The only people who claim they now have doubts about Newegg because of this have very water-tight nether regions if you get my drift.
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#4
AsRock
TPU addict
Yet again Newegg Rocks :).
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#5
kenkickr
I'm just glad to see it wasn't D&H's fault. The place I work for uses D&H and they always seem to be top notch to work with.
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#6
TIGR
I wonder how the termination of relations with IPEX will impact Newegg and how major a supplier they were for the Egg?
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#7
[I.R.A]_FBi
i <3 newegg, faithful to me for over 7 years :)
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#8
gumpty
Heads will be rolling at IPEX. :roll:

by: TIGR
I wonder how the termination of relations with IPEX will impact Newegg and how major a supplier they were for the Egg?
I imagine that a company like Newegg will have a very robust and well-prepared supply chain that can cope with this sort of disruption. There are people that get paid a lot of money to analyse company's processes and supply chains to prepare for these sort of eventualities.
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#9
xrealm20
I'd be willing to bet that the "releasing" of IPEX won't affect newegg much. There is siginificant competition in the distribution sector. I'm sure they can pick up another distributor if needbe.
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#10
WarEagleAU
Bird of Prey
Aren't you glad I posted the Facebook link now? HA HA! Yeah sucks that this happened, but Newegg will get another supplier. Im sure there are several chomping at the bits to get in with them and do business. Curiously, I wonder why they just don't get product directly from Intel. I figured it would be cheaper. However, I am probably wrong on that.
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#11
Bull Dog
I expected nothing less from Newegg really. Props to Newegg for handling this issue in the fashion they did.
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#12
KainXS
so I'm guessing IPEX is in some trouble huh, selling counterfeit cpu's to a distributor
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#13
DirectorC
by: KainXS
so I'm guessing IPEX is in some trouble huh, selling counterfeit cpu's to a distributor
That would assume that they purposely/knowingly did it...
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#14
digibucc
by: DirectorC
That would assume that they purposely/knowingly did it...
not necessarily, they could just be using shady supply chains themselves, they could be at fault even if they didn't know specifically that they were frauds.
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#15
[I.R.A]_FBi
fallout will be greater for IPEX than newegg
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#16
KainXS
well we will find out later because theres no doubt newegg and Intel are gonna investigate the hell outa this one.

I still can't believe someone installed a piece of aluminum in their motherboard

zomg
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#17
btarunr
Editor & Senior Moderator
I'd assume DIY users who buy Core i7 920 CPUs can tell it's fake before actually installing it.
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#18
Kitkat
its so funny to me how many ppl AUTO-BANDWAGON when they saw that newegg was involved lol I've had one issue with them they are a big company statistics apply and even so they are still very good at what they do. better than most... well now that i think of it ebay and amazon Tider(In)direct "ordeals" included its the best.
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#19
fochkoph
I can't believe how so many people were quick to dismiss the Egg's credibility when this fiasco first surfaced. I've been shopping with Newegg for years and have never had a lasting issue with the retailer. If anything Newegg always goes beyond my expectations to make sure I'm satisfied and I had no doubt that they would do the same to all those affected by the counterfeit processors as this is a reputation they would not be quick to shed. Oh how fickle we have all become.
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#20
DannibusX
I never had a doubt on Newegg's integrity. They are a great company.
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#21
blkhogan
Good for NewEgg. Put your very powerful e-foot down. Cutting ways with IPEX is the right move for now. NewEgg is still #1 on my list.
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#22
Master Wolfe
I've been shopping there since, sheesh, 2001? And while I've had disputes with them, they were always able to resolve it without too much drama. Still my first choice for shopping online!
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#23
Duffman
Newegg rocks. Always have and episodes like this one lead me to believe they always will. I almost exclusively use them for my components and will continue to do so. I obly go elsewhere if i can't find something there or it's an emergency and need it 5 min ago.
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#24
1c3d0g
Sucks for IPEX. Once you get the wrath of Intel's lawyers on your back, it's gonna break, sooner or later. :D
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#25
lemonadesoda
by: btarunr
The controversy surrounding Newegg's shipment of counterfeit Intel Core i7 920 processors to some customers has finally met its logical conclusion, with Newegg disposing facts and making great headway in resolving the issue with affected customers. In a statement to HardOCP.com, Newegg said that it is conducting a thorough investigation in collaboration with Intel and law-enforcement agencies, to get to the bottom of how counterfeit merchandise could get into its supply chain.
I do hope they were disclosing facts and not disposing of them! ;)

Interesting story. Thanks for the update.
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