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NewEgg Confirms Shipping Fake Core i7s

kdawson posted more than 4 years ago | from the making-good dept.

Crime 314

adeelarshad82 writes "After originally rejecting the story, online retailer NewEgg confirmed that a shipment of Core i7s were indeed fake, and apologized for the affair. NewEgg has also broken off its relationship with IPEX, the supplier of the phony lot. The retailer said that it has already contacted affected customers and would continue to reach out and replace the counterfeit parts. We discussed the fake Core i7s over the weekend."

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314 comments

New Egg (-1, Troll)

nhytefall (1415959) | more than 4 years ago | (#31420004)

...smells like a rotten egg to me.

Re:New Egg (4, Insightful)

Etrias (1121031) | more than 4 years ago | (#31420142)

I've bought a lot of stuff from Newegg and they've been really good. They often get good marks for their RMA policy and returns on DOA equipment. Looks like to me they took the right steps here including stopping the relationship with the supplier who gave them the phony i7s and working to replace the ones that went out. There's nothing here that would prevent me from shopping with them again.

Re:New Egg (2, Insightful)

coolgeek (140561) | more than 4 years ago | (#31420666)

Ah gee. Here's the appropriate response to the fp: http://instantrimshot.com/ [instantrimshot.com]

Re:New Egg (-1, Troll)

Feyr (449684) | more than 4 years ago | (#31420688)

newegg won't even let me purchase from them, their paypal settings are fucked and they won't do anything about it

i have half of a mind to think it's on purpose just so they can get get credit card numbers to run scams on, and this latest snafu doesn't help me think otherwise

Re:New Egg (3, Insightful)

Darkness404 (1287218) | more than 4 years ago | (#31420224)

...And what do you do to prevent this? Go through every single Core i7 to find the fake ones? Quite honestly, when you get told that you are buying a Core i7, the box looks genuine (unless you are reading everything) it looks like the correct weight, etc. In short, there isn't much Newegg could have done short of opening up every box.

Re:New Egg (2, Informative)

UnknowingFool (672806) | more than 4 years ago | (#31420512)

Also opening every box would break the seals. Technically the item is now longer considered "new" under applicable laws.

Counterfits are everywhere (4, Insightful)

colin_faber (1083673) | more than 4 years ago | (#31420014)

Want to find even more? Try buying some flash on ebay sometime.

Caveat Emptor (4, Funny)

Nefarious Wheel (628136) | more than 4 years ago | (#31420020)

"But... if you can't trust the Government, who can you trust?"

- Yahoo Serious, Young Einstein

Re:Caveat Emptor (5, Funny)

Etrias (1121031) | more than 4 years ago | (#31420086)

I'm not sure quoting Yahoo Serious will get you +5 Funny. Maybe +5 What the Hell?

Re:Caveat Emptor (0, Redundant)

mybecq (131456) | more than 4 years ago | (#31420604)

How about someone with much higher credibility?

"If you can't trust the Governments of the world, who can you trust?"
- Albert Einstein (Young Einstein)

Re:Caveat Emptor (1)

Conspiracy_Of_Doves (236787) | more than 4 years ago | (#31420168)

"But... if you can't trust the Governments of the world, who can you trust?"

FIFY

YEAH! I know it by heart! You got a problem with that?

Re:Caveat Emptor (5, Funny)

spun (1352) | more than 4 years ago | (#31420530)

"But... if you can't trust the Governments of the world, who can you trust?"

FIFY

YEAH! I know it by heart! You got a problem with that?

No sir! Anyone who will admit to knowing Yahoo Serious by heart is a tougher hombre than I.

Re:Caveat Emptor (1)

OzPeter (195038) | more than 4 years ago | (#31420582)

"But... if you can't trust the Governments of the world, who can you trust?"

FIFY

YEAH! I know it by heart! You got a problem with that?

No sir! Anyone who will admit to knowing Yahoo Serious by heart is a tougher hombre than I.

Know it by heart - yeah I know it too. I also have the soundtrack CD

Re:Caveat Emptor (0)

Anonymous Coward | more than 4 years ago | (#31420660)

I had it on vinyl back in the 70s.

Glad Newegg confirmed they're fake! (5, Funny)

Dragoniz3r (992309) | more than 4 years ago | (#31420026)

It was a little up in the air there for awhile!

Re:Glad Newegg confirmed they're fake! (0)

Anonymous Coward | more than 4 years ago | (#31420048)

Well, they might have been real after all.

Re:Glad Newegg confirmed they're fake! (2, Informative)

John Napkintosh (140126) | more than 4 years ago | (#31420070)

They were leaning on that "oh, our bad, we got some 'demo units' by mistake" excuse pretty hard.

Demos? C'mon, demos are supposed to work, not be a blob of aluminum.

Re:Glad Newegg confirmed they're fake! (5, Interesting)

c++0xFF (1758032) | more than 4 years ago | (#31420162)

Depends on the demo.

Chip manufacturers will often give away defective chips as demos to those thinking of using them in circuit boards. Non-functional demo chips are used in the design phase as the boards are laid out and the first parts are placed.

Imagining wasting a working chip just to find out if you're soldering things on correctly.

Partially-functional chips (might work but still failed testing for obscure reasons) are also used as demos for building prototype boards.

Neither case applies for NewEgg, however.

Re:Glad Newegg confirmed they're fake! (2, Informative)

Anonymous Coward | more than 4 years ago | (#31420704)

These weren't demo units, they are nothing like demo/sub-standard products. Search them out on the youtube posts on it. Basically they're just squares of aluminum (no pins) and a plastic mold for the fan with a sticker on it for the blades. Most people are assuming they're duff but real CPUs, they're not, they do not function, cannot function, and do not look like the real parts.

Re:Glad Newegg confirmed they're fake! (2, Interesting)

martas (1439879) | more than 4 years ago | (#31420732)

what if they were testing their packaging pipeline?

Intel Inside... (2, Informative)

Anonymous Coward | more than 4 years ago | (#31420030)

I sure liked the typos on the box. All that effort to duplicate holograms and what not, and they blow it on spacing and spelling.

Criminals, you gotta love their chutzpah.

Re:Intel Inside... (1)

Darkness404 (1287218) | more than 4 years ago | (#31420276)

...Because everyone reads the back while shopping? Lets say this was inside a store, you say "Hey, I want a Core i7 model XXX, they find the box, it looks official, same model XXX you wanted so you buy it and take it home. You aren't going to read the blurb on the back about it, because you know what you want. Its only after you realize that you've been scammed that you would realize some of the typos.

Re:Intel Inside... (1)

c++0xFF (1758032) | more than 4 years ago | (#31420334)

And in the case of NewEgg, it's just somebody in the warehouse filling boxes. As long as it looks like the real thing when sitting next to it, it'll get shipped to the customer.

In fact, I bet there would have to be several significant differences before anybody would pause to make sure they're packaging a genuine product.

Re:Intel Inside... (1)

Darkness404 (1287218) | more than 4 years ago | (#31420358)

Exactly, if the average person isn't going to notice it in a store, Newegg isn't going to notice it when they deal with A) A basic employee B) Coming from a supplier they think they can trust and C) The pressure to box 200-300+ of them in one sitting.

Rejecting?? (3, Informative)

Anonymous Coward | more than 4 years ago | (#31420058)

When did they reject the story??

They never denied shipping fake units... the only difference between their story then and now is WHY the fake units existed.

Even weirder (0)

Anonymous Coward | more than 4 years ago | (#31420068)

Even weirder, investigators who arrived at the IPEX distributer address found no actual office, only a dirty water hotdog cart under a bus stop.

Lost customer (1, Insightful)

Anonymous Coward | more than 4 years ago | (#31420082)

After originally rejecting the story

And there's the problem.
All they needed to do when the story broke was say "We are looking into it".

By rejecting it while it was obviously true, I've lost faith in them.

Re:Lost customer (5, Informative)

maxume (22995) | more than 4 years ago | (#31420254)

They acknowledged that they had shipped non functional units on Friday:

http://twitter.com/Newegg/status/10050889498 [twitter.com]

They probably would have done better to say less, but they never denied the issue entirely.

Re:Lost customer (5, Insightful)

Anonymous Coward | more than 4 years ago | (#31420712)

You'd seriously lose faith in a company that blows everyone else away in customer service because of this one thing? Are you serious? So it doesn't matter that they exchanged the fakes and bent over backwards to fix the problem?

Grow the hell up and come back to reality. This entitled generation crap is beyond annoying, expecting everyone and everything to be absolutely perfect and cater to your every need and the second they don't then BAM they're horrible and evil.

NewEgg handled it well, (5, Informative)

SpazmodeusG (1334705) | more than 4 years ago | (#31420084)

Newegg were on top of this pretty early.
They never denied there being a problem although they took a day to figure out what was happening.
They have already apologized, announced they are sending out replacements and announced they are getting a new distributor a couple of days ago.

Re:NewEgg handled it well, (5, Insightful)

Anonymous Coward | more than 4 years ago | (#31420126)

True, that's an amazing amount of professionalism and quick action on their part. Pity shame that for some Slashdot readers, that won't be enough, and they won't be happy until they see Newegg executives' heads on pikes, even if it wasn't their fault. Mmm, tasty, frothy bile...

No, they didn't. (-1, Troll)

Anonymous Coward | more than 4 years ago | (#31420148)

Newegg should have known these units were fake, and the fact that end users ended up with "demo" units is inexcusable. I hope newegg burns for this.

Re:NewEgg handled it well, (3, Interesting)

Conspiracy_Of_Doves (236787) | more than 4 years ago | (#31420226)

I don't order parts online that often, but because of this, Newegg is getting put right to the top of the list of places I look at first when I do.

Re:NewEgg handled it well, (4, Insightful)

noidentity (188756) | more than 4 years ago | (#31420464)

Hell, I've never ordered from NewEgg, but they're the first place I go for reviews, and to leave my own reviews of products. I haven't found any other "review" site that isn't mostly ad-laden crap and pages with the title "Reviews of ", only to be empty and say "Be the first to review !".

Re:NewEgg handled it well, (2, Interesting)

bhtooefr (649901) | more than 4 years ago | (#31420644)

Except Newegg reviews are the YouTube comments of the review world.

BS (-1)

glrotate (300695) | more than 4 years ago | (#31420228)

They threatened to sue the journalists reporting the story. [techeye.net]

Re:BS (1, Informative)

Anonymous Coward | more than 4 years ago | (#31420290)

The supplier that Newegg got rid of was the one threatening to sue journalists. Again Newegg did the right thing by getting rid of them.
Newegg themselves never denied the incident nor did they threaten to sue anyone.

Re:BS (5, Informative)

characterZer0 (138196) | more than 4 years ago | (#31420298)

According to that article Newegg did not threaten to sue, Newegg's supplier did.

Re:BS (0)

Anonymous Coward | more than 4 years ago | (#31420452)

And it seems D&H was rightfully pissed.

Re:BS (2, Informative)

brunascle (994197) | more than 4 years ago | (#31420314)

Not Newegg. That was D&H Distributing, the company that was originally (falsely) accused.

Re:BS (0)

Anonymous Coward | more than 4 years ago | (#31420352)

RTFA. The company that sent the cease and desist letters is D&H Distributing, which had nothing to do with this case. It's reasonable for them to have sicked their lawyers on journalists making baseless accusations.

Re:BS (4, Informative)

eepok (545733) | more than 4 years ago | (#31420402)

Read the article you linked. It's the distributor D&H that these sites accused without evidence and as such it was the D&H lawyers that sent the cease and desist. As it turns out it was a completely different distributor (IPEX).

"A company called D&H Distributing doesn’t consider it legitimate for the free press took umbrage to this. In fact, the legal beagles over at D&H Distributing got so worked up over the horrifying gall and chutzpah of Icrontic and HardOCP for daring to ask a question that the company slapped both publications with a “cease and desist” order.

Sent by the lawyers representing D&H, Creim Macias Koenig & Frey, it reads in part..."

Re:BS (2, Insightful)

BikeHelmet (1437881) | more than 4 years ago | (#31420778)

Seems like they're justified. HardOCP's blunder probably just cost them millions - but there's no way to measure it exactly.

The media seems to wield its power haphazardly at times.

At least with sites like TheInquirer, the damage is small if the article is wrong. They have a reputation, after all.

Re:BS (4, Informative)

bem (1977) | more than 4 years ago | (#31420406)

Your link says that D&H, not Newegg threatened legal action.

Considering that D&H did not sell the fakes to Newegg, well, they are justifiably upset that people are wrongfully blaming them.

IANAL, so I don't know if they have an actionable complaint, but your link doesn't show a Newegg legal threat, and, again, D&H is understandably pissed off that they were blamed when they had nothing to do with it.

Re:BS (2, Interesting)

idontgno (624372) | more than 4 years ago | (#31420446)

No, actually, one of NewEgg's distros threatened to sue the bloggers. And justifiably, since the accusation as made was mistaken.

Oh, in related news, NewEgg threatened to sue YOU for falsely accusing them of suing journalists.

Ok, no, not really.

But it's pretty obvious a LOT of people need to be more careful tossing around accusations.

Re:BS (4, Informative)

Mr. Sketch (111112) | more than 4 years ago | (#31420480)

Did you even read that article you linked to? It says that the legal threats came from a company called D&H Distributing that the sites claim sold the counterfeit equipment to Newegg:

In fact, the legal beagles over at D&H Distributing got so worked up over the horrifying gall and chutzpah of Icrontic and HardOCP for daring to ask a question that the company slapped both publications with a “cease and desist” order.

Sent by the lawyers representing D&H, Creim Macias Koenig & Frey, it reads in part:

“It has recently been brought to our attention that you are responsible for publishing on the internet, and specifically on your websites, untrue statements respecting allegedly counterfeit Intel Core i7 processors which you allege were sold to Newegg by D&H.

“This letter places you on notice that these statements are false. You have no basis for publishing these false and malicious statements about D & H. These false allegations are defamatory and disparaging to D&H”s business and business relations and have caused grave and irreparable damage to our client.”

Emphasis mine.

That article also mentions that Newegg had already started issuing replacements and they were just trying to figure out where those chips came from:

Tech community site, Icrontic, picked up the HardOCP story and noted that Newegg had shipped replacements for the fake CPUs quickly to affected customers and that both the e-tailer and Intel were in the process of investigating where the chips came from.

Emphasis mine.

Re:NewEgg handled it well, (1)

eepok (545733) | more than 4 years ago | (#31420262)

Yep. Newegg has never done me or anyone I know any wrong. They've done a couple things incorrectly over my massive number of purchases with them (like sending me some ddr266 instead of ddr300 ram), but the day I told them was the day they told me to send it back and they'd replace it.

This entire ordeal has only further solidified my loyalty to checking them first and giving their products a premium preference.

Glad (1, Interesting)

Renraku (518261) | more than 4 years ago | (#31420090)

Glad to see NewEgg confirming that the problem exists and that they're fixing it. Now they have to take responsibility for their actions, what will they offer as compensation to those affected? All problems a company encounters are opportunities in customer service.

Yes, I realize you fucked my steak up, but mistakes happen. How are you going to fix it? Replacing the steak, fine, but keep in mind I had to wait for it to be cooked, now I have to wait for it to be cooked again. Free dessert? Sure. In the end, they ended up better off than they started. Because now I know they're willing to make up for their mistakes.

Re:Glad (5, Insightful)

Konster (252488) | more than 4 years ago | (#31420210)

Welcome to the entitlement mindset.

Newegg is doing their share by rush shipping replacements. This whole affair isn't their fault and they got on top of the situation quickly enough, what more do you expect?

Re:Glad (1)

Elshar (232380) | more than 4 years ago | (#31420268)

Dessert, of course. Or, well. A second processor!

Re:Glad (4, Interesting)

MarkvW (1037596) | more than 4 years ago | (#31420348)

The CONTRACTUAL entitlement mindset is a VERY good thing. Commerce depends on it.

Parent is naive. Corporations will try ANY legal argument to get money from consumers and the government. The idea that a citizen should foreswear such BS entitlement arguments while they are exploited by corporations that freely make (and benefit from) them is ridiculous and absurd.

Re:Glad (1)

ArsonSmith (13997) | more than 4 years ago | (#31420444)

The relationship of taking advantage is two way.

Re:Glad (1)

martas (1439879) | more than 4 years ago | (#31420750)

REALLY?

Re:Glad (1)

eepok (545733) | more than 4 years ago | (#31420428)

Thank you!

They're distributor screwed everyone and Newegg is trying to fix it all. That's plenty. That's loyalty and doing the right thing as quickly as possible. That's all that's needed.

Re:Glad (5, Funny)

Spewns (1599743) | more than 4 years ago | (#31420450)

Welcome to the entitlement mindset.

And rightfully so.

Re:Glad (0)

Anonymous Coward | more than 4 years ago | (#31420494)

I expect that cake will be served. And it will be delicious.

Re:Glad (5, Insightful)

Thaelon (250687) | more than 4 years ago | (#31420598)

They vetted the supplier.

It turns out they did a bad job of it.

It's their responsibility because the items were sold on their site.

Now, making good on their fuckup isn't the entitlement mindset, it's excellent, self-serving business sense. Allow me to explain, it's really quite simple:

You can buy a customer for life far cheaper than you can think by simply owning up to the problem, fixing it, then going beyond that.

It could be as cheap, and as easy as free overnight/cross shipping of the replacements. You absolutely lose money on the spot. But you're very likely to see the customer again. It's simply thinking long term.

That kind of service will get noticed and will bring people back next time because they know that even if shit goes wrong, they'll be well taken care of.

It's the same reasoning why most of my video cards are eVGA. Their customer service to my friends has been so stellar I know I'll be taken care of if their shit breaks. Yes, I wrote that correctly, I've never even had to deal with their customer service, yet they're my first choice for video cards. All because of stellar service they gave two of my friends. For a paltry $300 or so they bought three repeat customers. It's just another form of investment, and I'm living proof that it works. Hell, I just gave them great PR, and I hate PR.

Re:Glad (1)

coolgeek (140561) | more than 4 years ago | (#31420696)

I think your judgment is a little premature. It could be some guy on the dock at IPEX swapped a pallet for his criminal cronies.

Re:Glad (1)

Jackie_Chan_Fan (730745) | more than 4 years ago | (#31420730)

Well I wouldnt say thats entirely entitlement. There was once a time in this country of America, that businesses would go out of their way to make sure the customer was happy by doing things such as the poster's example.

It would be entitlement to expect anything MORE than a replacement CPU (authentic of course) + Free overnight shipping...

But it certainly would be nice if Newegg threw in something extra for their troubles. No one expects them to, but by doing so, newegg would be going out of their way to save face and earn back the respect and trust of those effected and others spectating.

Again, there's no need to expect it but such actions benefit the business failed the customer. Certainly, free overnight shipping of the cpu replacement would be at the least... expected.

A local pizza place here... throws in free stuff all the time for me. They're nice folks. Sometimes for no reason, they'll give me a couple extra stuffed garlic knots, slices etc. They've done it for no reason, and they've done it for reasons such as me waiting a while in the store for my food, or accidently forgetting an item... etc.

Businesses do go out of their way at times to be kind to teh customer. It's not as common as it once was, but when a business does so... they earn big respect points.

Re:Glad (-1, Troll)

Anonymous Coward | more than 4 years ago | (#31420764)

Welcome to the entitlement mindset.

Wow. That conservative knee jerk is getting seriously out of hand. If someone violates a contract, I'm entitled to compensation. Are you saying you don't like are free market legal system?

Re:Glad (2, Informative)

dbcad7 (771464) | more than 4 years ago | (#31420374)

The scenarios you describe are nice.. But it's kind of like tipping.. It's an accepted practice, but not required. There are oh so many people who abuse the niceties of customer service, at restaurants in particular.. Many people call customer service lines in ballistic mode, because they have come to expect something free offered.. These situations should be a pleasant surprise that something extra was done to make someone happy, not am expectation.. Someone "working the system" really isn't going to appreciate it anyway.

Re:Glad (1)

Idbar (1034346) | more than 4 years ago | (#31420422)

what will they offer as compensation to those affected?

Maybe the affected people can keep the fake ones? ;)

Re:Glad (4, Funny)

noidentity (188756) | more than 4 years ago | (#31420486)

Maybe as compensation they can send a T-shirt that says "NewEgg sent me a counterfeit Intel processor and all I got was this stupid T-shirt".

New 'bad analogy guy' (1, Funny)

Anonymous Coward | more than 4 years ago | (#31420482)

You bought at NewEgg for price. You want to continue buying at NewEgg for price. To continue that relationship with customers they're going to replace the bum parts, and they are not going to send you a visit from the magical blowjob pony. The economics of computer retail are nothing at all like restaurants.

Re:Glad (2, Insightful)

LWATCDR (28044) | more than 4 years ago | (#31420502)

They are RUSH shipping the customers replacements. That is good enough to be fair. Lets put you in the same situation. You bump into me you say I am sorry. Well you wrinkled my shirt. So you should pay for my dry cleaning.
You cut me off in traffic and cost me five minutes because I hit a red light. I want cash.

Yes it is nice if they bend over backwards. In this case if you paid for rush shipping I could see them refunding it. In the end if you think they didn't do enough then don't buy from them. But this give me this or that is just a case of mistaken entitlement.
It is nice when they do it but it is not a requirement.

After following this.... (0)

Anonymous Coward | more than 4 years ago | (#31420120)

After following this story early friday from hardocp.com, I still have 1 question. At what point in the process, did the fake processor's enter the supply chain? This, afaik, has still not been answered.

Was it between the Intel fab. plant and the wholesaler? Wholesaler and frontline sales (ie. newegg)? Or, Newegg and customer? There may be more links in the chain, but I'd still like to know where the swap was made. Will we ever know? Newegg dropping IPEX doesn't tell me where the counterfeits entered the supply chain.

Re:After following this.... (4, Informative)

eepok (545733) | more than 4 years ago | (#31420442)

If IPEX was tossed out, I'm guessing it was someone at IPEX who was swapping processors out for dummies (for sale elsewhere, I assume) and then sending the fakes to Newegg.

fake fakes? (3, Insightful)

Sporkinum (655143) | more than 4 years ago | (#31420138)

I wonder if anyone who got an i7 will try to make a fake fake to get another i7. Some one in Newegg's shipping will have to check the fakes to make sure they are real fakes. My head just exploded.

Re:fake fakes? (1)

MonsterTrimble (1205334) | more than 4 years ago | (#31420214)

I think that's a non issue. First off, without RTFA or the previous discussion, I'm pretty sure there are telltale visual signs if it's fake or not. Second, the only way you would know is by plugging the sucker in and why bother disassembling half your computer, repacking the CPU and sending it back for ANOTHER i7. I fail to see the logic in it.

Re:fake fakes? (3, Informative)

MartinSchou (1360093) | more than 4 years ago | (#31420266)

Not true. We aren't talking "fake - not the correct part", we're talking "fake - not a cpu but a hunk of metal, not a cooler just a piece of plastic with a sticker on it".

If you are buying cpus, you'll know they're fake when you see them.

Re:fake fakes? (0)

Anonymous Coward | more than 4 years ago | (#31420294)

He was suggesting that people that got REAL processors would try to build one of the fake ones and return it for exchange so they'd have 2 real ones for the price of 1.

Re:fake fakes? (1)

Darkness404 (1287218) | more than 4 years ago | (#31420330)

Sure, but how many people are going to look for typos? Sure, if you are boxing 2 or 3 Core i7s a day its realistic you can look at them, but lets say that you have to stuff 200-300+ a day while having to put others in boxes?

Re:fake fakes? (0)

Anonymous Coward | more than 4 years ago | (#31420568)

use a video camera with OCR/image match capability. the food industry does.

Re:fake fakes? (1)

Darkness404 (1287218) | more than 4 years ago | (#31420690)

It would be far too much to invest in to save a small amount of money. Plus, it wouldn't work too well with multiple packages for the same item.

Re:fake fakes? (4, Insightful)

tnk1 (899206) | more than 4 years ago | (#31420278)

Newegg has to track outgoing inventory to prevent internal theft, so it is a good bet they probably associated an inventory item with an outgoing order. So, if they know which order the customer is returning, they can probably trace it back to the original supplier in some manner. If they have a good tracking system, they could probably bring up that detail immediately.

Re:fake fakes? (0)

Anonymous Coward | more than 4 years ago | (#31420412)

Even if they don't quite have that capability, though, they should still be able to know roughly which shipments potentially had a fake i7 (by date range, for example). Depending on the volume of i7 sales, that's probably good enough to just write off any fake RMAs.

Besides, I bet NewEgg isn't even asking for the fakes back. When I had a defective product once, they just sent me a new one without making me pay for return shipping. That sure made my day!

What about the legal threats? (-1, Redundant)

glrotate (300695) | more than 4 years ago | (#31420174)

Is NewEgg going to apologize for the way their attorney's threatened to sue the journalists reporting this story?

Re:What about the legal threats? (5, Informative)

richardellisjr (584919) | more than 4 years ago | (#31420370)

That wasn't NewEgg, one of their suppliers (not the culprit) threatened to sue.

Re:What about the legal threats? (1)

coolgeek (140561) | more than 4 years ago | (#31420728)

Does anybody know how to read?

Re:What about the legal threats? (0)

Anonymous Coward | more than 4 years ago | (#31420392)

They didn't. D&H did: http://www.techeye.net/business/company-threatens-journalists-over-fake-intel-cpu-reports

No need for NewEgg to apologize for something they didn't do.

Re:What about the legal threats? (1)

bem (1977) | more than 4 years ago | (#31420418)

Citation for this?

I've only seen D&H with legal threats (and since they didn't ship the fakes in question, it's very understandable that they are upset with the "fact checking" that wasn't done).

D&H Distributing (5, Informative)

ptbarnett (159784) | more than 4 years ago | (#31420194)

HardOCP was apparently the original source of the allegation that D&H Distributing was the source of the counterfeit CPUs. They have since apologized to D&H, claiming that their source of information was someone inside NewEgg.

Counterfeit Intel CPU Saga Comes to a Close [hardocp.com]

At no time did HardOCP speculate as to what company was supplying the counterfeit processors to Newegg. Our source that informed us of the supplier being D&H Distributing came from within Newegg's organization. We belived the information to be accurate and reported it to our readers. Newegg is stating that IPEX shipped it the counterfeit processors. I am not sure as to why we would get conflicting information, and we will further investigate that.

At this time we offer our apologies to D&H Distributing for naming it as the supplying distributor. HardOCP was simply reporting the information that we believed to be accurate. We would NEVER "speculate" on something of this nature, as there is NOTHING for us to gain by misinforming our readers. We will be investigating further as to why we were misinformed on this detail.

Re:D&H Distributing (5, Insightful)

bfagan (71306) | more than 4 years ago | (#31420302)

This is exactly why trustworthy reporting outlets try to verify sources before reporting as fact. However, this becomes difficult in this time of now, faster, beat the other guy, instant publishing.

Re:D&H Distributing (2, Insightful)

ElectricTurtle (1171201) | more than 4 years ago | (#31420586)

They did verify the source. That doesn't mean the source is infallible (or if you're into conspiracy theories, maybe D&H was more important to NewEgg than IPEX, and so they're scapegoating the latter for the former, and the original source was right...).

If you have a news item about something that happened at company, and low level person there gives you some information, are you just going to ignore it? Please.

Re:D&H Distributing (0)

Anonymous Coward | more than 4 years ago | (#31420754)

And this is a great example of why HardOCP isn't a trustworthy reporting outlet in my opinion. I kind of hope D&H sues them anyway.

IPEX is not an authorized Intel distributor (1, Interesting)

Anonymous Coward | more than 4 years ago | (#31420234)

It looks like Newegg was buying i7's through a grey market channel and got burned. It's good that they ditched IPEX, but why were they buying from them in the first place? Who knows what channels their other stuff is coming through, and who has gotten to handle the equipment (with an opportunity to install malicious firmware, for example) before Newegg gets it and sells it. Is there ANY place to buy equipment with assurance of getting it through a 100% manufacturer authorized supply chain?

Re:IPEX is not an authorized Intel distributor (1)

bughunter (10093) | more than 4 years ago | (#31420384)

Is there ANY place to buy equipment with assurance of getting it through a 100% manufacturer authorized supply chain?

Umm... Maybe [apple.com] .

Re:IPEX is not an authorized Intel distributor (3, Insightful)

eepok (545733) | more than 4 years ago | (#31420472)

Is there ANY place to buy equipment with assurance of getting it through a 100% manufacturer authorized supply chain?

If there's humans making less money for their work than they think they should, then there will be no place with 100% authorized (secure) supply chain.

Ipex website returning blank pages (1)

RocketJeff (46275) | more than 4 years ago | (#31420318)

NewEgg identified IPEX as the distributor of the phony chips. Their website, http://www.ipexinfo.com/ [ipexinfo.com] , is now returning empty pages. Google shows a cached page that was available earlier today.

Don't know if it's just overloaded or if they took it down on purpose.

... really close to ASI (1)

Lead Butthead (321013) | more than 4 years ago | (#31420424)

The address is right on top of ASI... what's up with that?

Why does NewEgg even need a distributor? (1)

Man On Pink Corner (1089867) | more than 4 years ago | (#31420394)

Why can't they buy direct from Intel?

Re:Why does NewEgg even need a distributor? (4, Interesting)

swb (14022) | more than 4 years ago | (#31420498)

I get why Intel doesn't want to *retail* them, but what's the point of a wholesaler when you have a retail distributor as huge as Newegg?

And the same is true of other products sold via other retailers.

It almost seems like "we/they" put up with a needless set of middlemen who only mark stuff up.

Re:Why does NewEgg even need a distributor? (1)

martas (1439879) | more than 4 years ago | (#31420770)

so you're saying newegg should become walmart?

i know, i know, -1 flaimbait...

Re:Why does NewEgg even need a distributor? (0)

Anonymous Coward | more than 4 years ago | (#31420716)

This is how the market works. They do not want to peddle small amounts to individual online stores. They are not in the distribution business. They want to sell huge lots to OEMs and distributors.

Re:Why does NewEgg even need a distributor? (1)

Rockoon (1252108) | more than 4 years ago | (#31420722)

Volume discounts.

Resellers would benefit from getting together and purchasing in very large volumes, but in practice they just dont get along. Thus creates the need for Distributors.

Distributors supply many Resellers, so they act as a proxy of that deal the Resellers can't agree on amongst themselves. The Distributor gets a much better volume discount than any Reseller can individually, so both Distributor and Reseller can gain from this arrangement.

The manufacturer gains because their operation is much more efficient when they have large negotiated orders to meet, instead of an unpredictable stream of small orders.

Re:Why does NewEgg even need a distributor? (2, Interesting)

coolgeek (140561) | more than 4 years ago | (#31420746)

They probably do, but I imagine everyone is still on allocation with the i7, so newegg is forced to go to the open market to meet the demand.

No wonder my PC wouldn't boot. (1)

cosm (1072588) | more than 4 years ago | (#31420500)

Let this be a warning to all you rig builders wearing blindfolds! Hopefully those fakes are casted with a cheap, non-conducting alloy, otherwise break out the popcorn.

Hooray to NewEgg (1)

phorm (591458) | more than 4 years ago | (#31420508)

Congrats to NewEgg on getting onto this quickly. I'm in Canada and they haven't had a presence here for that long, but I've been fairly happy with their service, especially compared to some competitors (yes, I'm looking at you, TigerDirect).

This action will keep them at the top of my A-list. Even if they aren't always the cheapest, customer service has value too!

Who is IPEX? (5, Informative)

eepok (545733) | more than 4 years ago | (#31420524)

http://hardforum.com/showpost.php?s=d01ac05d09e4f3d3bfb4364cdbc5d2af&p=1035432866&postcount=927 [hardforum.com]

From [H] Forums:

I just want to clear up something Paul keeps bringing up in this thread: Ipex is a division of ASI. Ipex isn't ASI.

Full disclosure: I worked for ASI for some time back in the 90's (God, I feel old).

ASI is a legit Intel distributor (one of only a small handful) and is one of Newegg's biggest sources for Intel CPU's. Ipex, on the other hand, is the division that deals in gray market CPU's, RAM, etc.

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