Newegg Puts an End to Counterfeit CPU Saga

btarunr · Mar 9, 2010, 02:32 PM

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

JATownes · Mar 9, 2010, 02:40 PM

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.

DirectorC · Mar 9, 2010, 02:43 PM

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.

Wrigleyvillain · Mar 9, 2010, 02:44 PM

Agreed.

AsRock · Mar 9, 2010, 02:45 PM

Yet again Newegg Rocks

.

kenkickr · Mar 9, 2010, 02:46 PM

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.

TIGR · Mar 9, 2010, 02:53 PM

I wonder how the termination of relations with IPEX will impact Newegg and how major a supplier they were for the Egg?

[I.R.A]_FBi · Mar 9, 2010, 02:55 PM

i <3 newegg, faithful to me for over 7 years

gumpty · Mar 9, 2010, 03:09 PM

Heads will be rolling at IPEX.

Quote:

Originally Posted 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.

xrealm20 · Mar 9, 2010, 03:16 PM

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.

WarEagleAU · Mar 9, 2010, 03:17 PM

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.

Bull Dog · Mar 9, 2010, 03:17 PM

I expected nothing less from Newegg really. Props to Newegg for handling this issue in the fashion they did.

KainXS · Mar 9, 2010, 03:31 PM

so I'm guessing IPEX is in some trouble huh, selling counterfeit cpu's to a distributor

DirectorC · Mar 9, 2010, 03:33 PM

Quote:

Originally Posted 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...

digibucc · Mar 9, 2010, 03:37 PM

Quote:

Originally Posted 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.

[I.R.A]_FBi · Mar 9, 2010, 03:47 PM

fallout will be greater for IPEX than newegg

KainXS · Mar 9, 2010, 03:53 PM

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

btarunr · Mar 9, 2010, 04:01 PM

I'd assume DIY users who buy Core i7 920 CPUs can tell it's fake before actually installing it.

Kitkat · Mar 9, 2010, 04:13 PM

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.

fochkoph · Mar 9, 2010, 05:12 PM

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.

DannibusX · Mar 9, 2010, 05:48 PM

I never had a doubt on Newegg's integrity. They are a great company.

blkhogan · Mar 9, 2010, 05:55 PM

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.

Master Wolfe · Mar 9, 2010, 06:18 PM

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!

Duffman · Mar 9, 2010, 07:03 PM

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.

1c3d0g · Mar 9, 2010, 08:54 PM

Sucks for IPEX. Once you get the wrath of Intel's lawyers on your back, it's gonna break, sooner or later.

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Mar 9, 2010, 02:40 PM	#2
JATownes Join Date: Nov 2008 Location: West Texas Posts: 1,666 (1.01/day) Thanks: 659 Thanked 407 Times in 332 Posts System Specs	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. __________________ Please rate my M1dn1ght Rig "I will only buy this if it make's me a sandwich and plays with my balls" - alexsubri Sig compliments of Stefanels

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Mar 9, 2010, 02:32 PM	#1
btarunr Editor & Senior Moderator Join Date: Oct 2007 Location: Hyderabad, India Posts: 14,983 (7.29/day) Thanks: 788 Thanked 12,904 Times in 5,653 Posts System Specs	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

Mar 9, 2010, 02:43 PM	#3
DirectorC Banned Join Date: Nov 2009 Location: Florizy Posts: 1,597 (1.23/day) Thanks: 90 Thanked 269 Times in 248 Posts System Specs	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.

Mar 9, 2010, 02:44 PM	#4
Wrigleyvillain Join Date: Oct 2007 Location: Chicago Posts: 4,503 (2.20/day) Thanks: 1,526 Thanked 1,577 Times in 1,120 Posts System Specs	Agreed.

Mar 9, 2010, 02:45 PM	#5
AsRock TPU addict Join Date: Jun 2007 Location: US\ Uk Born Posts: 8,795 (4.07/day) Thanks: 1,675 Thanked 1,348 Times in 1,170 Posts System Specs	Yet again Newegg Rocks .

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Mar 9, 2010, 02:46 PM	#6
kenkickr Join Date: Dec 2007 Location: Springfield, IL Posts: 4,490 (2.25/day) Thanks: 1,024 Thanked 1,328 Times in 1,094 Posts System Specs	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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Mar 9, 2010, 02:53 PM	#7
TIGR Join Date: Aug 2008 Location: Minnesota, USA Posts: 2,098 (1.21/day) Thanks: 739 Thanked 1,030 Times in 598 Posts System Specs	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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Mar 9, 2010, 02:55 PM	#8
[I.R.A]_FBi Eligible for custom title Join Date: May 2007 Location: c:\programs\kitteh.exe Posts: 6,152 (2.80/day) Thanks: 724 Thanked 556 Times in 461 Posts System Specs	i <3 newegg, faithful to me for over 7 years __________________ Rig 1+1 Athlon XP 2200+, MSI KM2M Combo, ATI 9200SE 128 MB DDR, 2 X 512 MB DDR333, 250GB + 80 HDD? “try intel cpu, amd is only good for going to nude sites” -firehawkxd “go for the 5850 now and play games while the nvidiots wait for the ceo to show an actual working product” -W1zzard “An MSI logo? This offends my retina. I await your apology.” -MRCL www.autolounge.com.jm

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Mar 9, 2010, 03:16 PM	#10
xrealm20 Join Date: Jan 2010 Location: Houston Posts: 452 (0.37/day) Thanks: 34 Thanked 130 Times in 92 Posts System Specs	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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Mar 9, 2010, 03:17 PM	#11
WarEagleAU Bird of Prey Join Date: Jul 2006 Location: Gurley, AL Posts: 9,994 (3.98/day) Thanks: 3,810 Thanked 557 Times in 521 Posts System Specs	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. __________________ =-TheEagle-= http://www.heatware.com/eval.php?id=62454 “You crazy? Surfing any website without an antivirus is like freaking with a dirty woman without protection” -OzzmanFloyd120 - Edited for content and clarity

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Mar 9, 2010, 03:17 PM	#12
Bull Dog Join Date: Jan 2006 Posts: 156 (0.06/day) Thanks: 3 Thanked 17 Times in 11 Posts System Specs	I expected nothing less from Newegg really. Props to Newegg for handling this issue in the fashion they did.

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Mar 9, 2010, 03:31 PM	#13
KainXS Join Date: Sep 2007 Posts: 4,694 (2.27/day) Thanks: 184 Thanked 465 Times in 382 Posts System Specs	so I'm guessing IPEX is in some trouble huh, selling counterfeit cpu's to a distributor

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Mar 9, 2010, 03:47 PM	#16
[I.R.A]_FBi Eligible for custom title Join Date: May 2007 Location: c:\programs\kitteh.exe Posts: 6,152 (2.80/day) Thanks: 724 Thanked 556 Times in 461 Posts System Specs	fallout will be greater for IPEX than newegg __________________ Rig 1+1 Athlon XP 2200+, MSI KM2M Combo, ATI 9200SE 128 MB DDR, 2 X 512 MB DDR333, 250GB + 80 HDD? “try intel cpu, amd is only good for going to nude sites” -firehawkxd “go for the 5850 now and play games while the nvidiots wait for the ceo to show an actual working product” -W1zzard “An MSI logo? This offends my retina. I await your apology.” -MRCL www.autolounge.com.jm

Mar 9, 2010, 03:53 PM	#17
KainXS Join Date: Sep 2007 Posts: 4,694 (2.27/day) Thanks: 184 Thanked 465 Times in 382 Posts System Specs	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

Mar 9, 2010, 04:01 PM	#18
btarunr Editor & Senior Moderator Join Date: Oct 2007 Location: Hyderabad, India Posts: 14,983 (7.29/day) Thanks: 788 Thanked 12,904 Times in 5,653 Posts System Specs	I'd assume DIY users who buy Core i7 920 CPUs can tell it's fake before actually installing it. __________________ Gadgets, Phones, Tablets, Cameras, TVs, HiFi...NextPowerUp

Mar 9, 2010, 04:13 PM	#19
Kitkat Join Date: May 2009 Posts: 767 (0.52/day) Thanks: 44 Thanked 77 Times in 54 Posts	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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Mar 9, 2010, 05:12 PM	#20
fochkoph Join Date: Nov 2008 Location: Fremont, CA Posts: 151 (0.09/day) Thanks: 22 Thanked 13 Times in 11 Posts System Specs	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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Mar 9, 2010, 05:48 PM	#21
DannibusX Join Date: Aug 2009 Location: United States Posts: 2,039 (1.48/day) Thanks: 784 Thanked 945 Times in 626 Posts System Specs	I never had a doubt on Newegg's integrity. They are a great company. __________________ “Has the whole world gone crazy? Am I the only one around here who gives a s**t about the rules? Mark it zero!” -Walter Sobchak “Yup, you were 9-2 when you slid it in me.” -MT Alex

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Mar 9, 2010, 05:55 PM	#22
blkhogan Join Date: Aug 2007 Location: If I told u.. I'd have to kill u Posts: 1,845 (0.87/day) Thanks: 823 Thanked 648 Times in 446 Posts System Specs	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.