Monday, March 8th 2010

Intel Steps into Alleged Counterfeit Core i7 920 Sale Issue

After last week's report on some of Newegg.com's customers receiving what the store calls "demo boxes" that it described to have been accidentally shipped by one of its "long term partners", Intel stepped in with a clarification on how it looks at these anomalies. In a statement to HardOCP.com, Intel's Dan Snyder said "Intel has been made aware of the potential for counterfeit i7 920 packages in the marketplace and is working to how many and/or where they are being sold. The examples we have seen are not Intel products but are counterfeits. Buyers should contact their place of purchase for a replacement and/or should contact their local law enforcement agency if the place of purchase refuses to help."

The "examples" Intel is referring to in the statement are these so-called "demo boxes", apparently 300 of them, which could be out on the loose. Meanwhile, Newegg.com is making efforts to get in touch with each of the affected customers and rush-delivering genuine merchandise or providing 100% refund, depending on what the customer chooses. While the whole episode seems to have taken a toll on Newegg's image as one of the most reliable, efficient, and competitive online retailers which it built over years, in the line of fire seems to be its "long term partner", a certain distributor in charge of these Intel processors. The same company sent cease and desist letters to some online publications to withdraw their reports on this issue, blaming them for publishing "untrue statements" about it. However Intel's statement adds clarity to the issue. Indeed some customers may have received "counterfeits", and indeed there are no such things as "demo boxes", at least as far as Intel is concerned. That said, whoever is behind these "demo boxes" still stands to face the law for infringement and imitation of Intel's product design, and trying to profit from it.
Sources: HardOCP.com, TechEYE.net
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104 Comments on Intel Steps into Alleged Counterfeit Core i7 920 Sale Issue

#76
jpierce55
1. Only a complete idiot would blame a reputable company the size of Newegg for the counterfeits. I mean come on 300 $280 processors? I am sure they would destroy a billion dollar company over that.

2. I very seriously doubt the warehouse workers pulling the orders have the time to check all the boxes for correct spelling.

3. Considering the cost to make those counterfeits I would also be prone to believing organized crime was involved.
Posted on Reply
#77
Deleted member 3
All but one get returned and destroyed. That one will be sold on ebay for $10.000 because it will be a collectors item.
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#78
Completely Bonkers
What, anyone got one of these? Keep it!

Did you realise there are ONLY 300 ever made? Guaranteed. Each one numbered and signed by the artist himself? Do you know how valuable these will be in a few years from now? Collectors items, soon to be found in a museum near you. If you have got one - seriously - keep it. Return an empty box with a photocopy, but keep the fake!

I will now eat this rubber tire to the music The Flight Of The Bumblebee. Music Maestro.

ART!
Posted on Reply
#79
newtekie1
Semi-Retired Folder
t77snapshot
Like I said before...you know someone out there tried to install that cpu and probably fried their board. :slap:
Anyone that stupid shouldn't be installing their own processor...:laugh:
Posted on Reply
#80
cauby
Correct me if i'm wrong,but isn't this a major loss for newegg?I mean,they paid their distributors the price for 300 real i7 920's (U$280x300=U$84,000) but only got cheap plastic and cardboard???

And I also don't think this is Intel or newegg's fault,they were victims of counterfeiters.Newegg should only be blamed for not paying more attention to what they put to sale,but since they're are trying to correct their mistake,it's ok!
Posted on Reply
#81
newtekie1
Semi-Retired Folder
cauby
Correct me if i'm wrong,but isn't this a major loss for newegg?I mean,they paid their distributors the price for 300 real i7 920's (U$280x300=U$84,000) but only got cheap plastic and cardboard???

And I also don't think this is Intel or newegg's fault,they were victims of counterfeiters.Newegg should only be blamed for not paying more attention to what they put to sale,but since they're are trying to correct their mistake,it's ok!
Newegg will likely not pay the distributor they got the CPUs from, assuming the distributor accepts the blame, and the distributor will not pay their supplier, and it goes up the chain until they figure out where along the chain the CPUs were swapped. Then that person along the chain will put in a claim to their insurance and the insurance will cover their loss minus a deductable.
Posted on Reply
#82
OVRKIL
OK, here's my no sense, I mean two cents!! I work in distribution for the largest Hockey company on the planet! I run the returns dept there and have a pretty good understanding of how things work. There's actually an interesting video on YouTube made by Newegg about how orders are processed, they have quite the facility.

Now regarding those 300 boxed CPUs, chances are it was one skid/pallet worth of product wrapped up nice and tidy so to protect the product and keep the inside concealed until its put away in its storage then picking location. If it was a bogus shipment from the distributor, then the outside documentation is what was recorded upon receiving the product and a quick check of the pallet contents. I can't tell you the number Asian vendors that screw up wording 'ans' skus (<-I made a funny!) and then get charged back to them for the mistakes. We had to relabel thousands of units due to errors by the vendors at times.

Anyway, looking at Newegg's picking process, there is a bin with a barcoded sticker that contains the order info that travels along a conveyor and at a certain picking station, someone scans the bin and places the appropriate product in the bin and it continues along its way. If no one actually scans the product, then they won't know if there's an issue, assuming someone replenished that pick bin properly.

Like someone has pointed out, the amount of $$ in question here is in excess of $80K and at that point I think the Fed will investigate and we will see where it takes it. I did notice one seller on ebay selling a boatload of 920s for like $700 'buy it now', claiming they are guarenteed overclockers!! BOGUS! So that's my take on what "possibly" could have happened based on my experience in distribution.

For the record, I am currently building my 4th PC with parts purchased almost exclusively thru the Egg! I have never had to RMA a single item! If I did receive something that I didn't order, of course I'd be upset, but I'd contact them immediately to get it resolved. Do I expect them to give me a ticket to Willy Wonka's factory for my troubles or divulge information that may need to be kept quiet because of a possible investigation!? Hell no, just give me what I ordered so I can complete my build!!

Thanks to listening to my nonsense and have a great night!

OVRKIL:nutkick:
Posted on Reply
#85
Kantastic
I'll think twice before reading, let alone believing, anything from [H]orriblyunreliableForum again.
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#86
TheMailMan78
Big Member
I'm a victim of this fraud! I ordered an i7 and they shipped me an Phenom II!
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#87
OVRKIL
TheMailMan78
I'm a victim of this fraud! I ordered an i7 and they shipped me an Phenom II!
OMG...OH THE HORROR..ARE YOU OK!!
Posted on Reply
#88
eidairaman1
The Exiled Airman
sounds like someone is Hording chips
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#89
[I.R.A]_FBi
eidairaman1
sounds like someone is Hording chipsmoney
:)
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#90
pantherx12
Not sure if anyone has called BTA out on "o it requires you to follow a standard RMA procedure - another couple of days' delay (in sending the item to newegg, them processing it, them approving it, ), and then shipping you a new chip."

newegg said they would do advance RMA which is sending you out the product/refund before they get it back to them.
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#91
jpierce55
oops, I see it is already linked.
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#92
Papahyooie
I just wanted to throw this out there, in the Email they said they would give an Advance RMA. That means they will send you the product immediately, before you shipping back the broken one.


EDIT: d'oh! Hadn't read this last page...
Posted on Reply
#93
WarEagleAU
Bird of Prey
Yeah I put it back a few pages ago, even bolded it, so it has been brought up. Easily mistaken or missed though, lets not bash BTA, he is an awesome person afterall.


EDIT: They took my thanks button again. Oh well :(
Posted on Reply
#94
caleb
Whats the fuss. I don't get it somebody stole 300 CPU's and intel needs to speak in the matter ? Strange...
Posted on Reply
#95
HammerON
The Watchful Moderator
DanTheBanjoman
All but one get returned and destroyed. That one will be sold on ebay for $10.000 because it will be a collectors item.
Hopefully you meant $10,000.00:)

I still love the Egg and will continue to give them my money for products I don't need but sure the hell want:toast:
Posted on Reply
#96
Deleted member 3
HammerON
Hopefully you meant $10,000.00:)
No, I meant $10.000 which is the correct Dutch notation. There is some flawed logic as to why I should be using the Dutch notation in an English sentence, just accept that.
Posted on Reply
#97
HammerON
The Watchful Moderator
DanTheBanjoman
No, I meant $10.000 which is the correct Dutch notation. There is some flawed logic as to why I should be using the Dutch notation in an English sentence, just accept that.
Whoops ~ my bad!
I apologize for globalizing American currency:)
Posted on Reply
#98
Yukikaze
caleb
Whats the fuss. I don't get it somebody stole 300 CPU's and intel needs to speak in the matter ? Strange...
If you were selling a product counterfeits of which would have cropped up, you would respond as well. This isn't about the theft.
Posted on Reply
#99
Deleted member 3
HammerON
Whoops ~ my bad!
I apologize for globalizing American currency:)
Notation, not currency.
Posted on Reply
#100
HookeyStreet
Eat, sleep, game!
LMAO @ those fakes. They arent even good ones :) I would expect a full refund or replacement and a little extra for my time being wasted ;)

What if some n00b actually stuck that, what looks like a piece of lead, onto his motherboard LMFAO
Posted on Reply
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