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Newegg Confirms Counterfeit Core i7s Shipped

by - source: Tom's Hardware US

Newegg quickly follows up with its customers after initially down-playing the situation as a wrong shipment of "demo" CPUs.

A quick follow-up to the story that broke out about Newegg shipping counterfeit/fake Intel. After Intel announced an investigation into the shipment from, Newegg now issues the following statement:

Read our initial report here, and its follow-up here.

Newegg is currently conducting a thorough investigation surrounding recent shipments of questionable Intel Core i7-920 CPUs purchased from Newegg.com.

Initial information we received from our supplier, IPEX, stated that they had mistakenly shipped us "demo units." We have since come to discover the CPUs were counterfeit and are terminating our relationship with this supplier. Contrary to any speculation, D&H Distributing is not the vendor that supplied us with the Intel Core i7-920 CPUs in question.

Newegg's top priority is to proactively reach out to all customers who may have been affected to ensure their absolute satisfaction. We have already sent out a number of replacement units and are doing everything in our power to resolve the matter promptly and with the least amount of inconvenience to our customers.

We have always taken pride in providing an exceptional experience for each customer, and we apologize for any inconvenience to our valued customers. We take matters like this extremely seriously, and are working in close cooperation with Intel and the appropriate law enforcement authorities to thoroughly investigate this incident.

Intel confirmed earlier today that it did indeed see fake Core i7 processors.

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Shadow703793 03/09/2010 3:09 AM
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Kudos to newegg! Now the question is, who actually counterfeited the i7s in the first place.

ktasley 03/09/2010 3:15 AM
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looks like D&H wasn't full of it and prolly had a pretty good reason to be angry

LATTEH 03/09/2010 3:16 AM
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Newegg is awesome if i got a counterfit i7 i would be pissed at first but because of how awesome newegg is they will RMA it :D

eklipz330 03/09/2010 3:17 AM
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JasonAkkerman 03/09/2010 3:17 AM
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JasonAkkerman 03/09/2010 3:18 AM
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LOL... got killed by a less-then symbol.

I heart NewEgg!

rockstone1 03/09/2010 3:20 AM
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Kudos to Newegg.

digitalrazoe 03/09/2010 3:28 AM
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NewEgg -- Good job .. D&H .. if you got on the ball to put this to rest Good job to you too!! IPEX --- Never EVER mess with a person and their CPU!!! we will rip you a new one! OOPs newegg already did !!

mianmian 03/09/2010 3:31 AM
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Newegg got a sort of Man-in-the-Middle attack ....
It should directly order from Intel, not some stupid IPEX.

Shadow703793 03/09/2010 3:49 AM
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mianmian :
Newegg got a sort of Man-in-the-Middle attack ....It should directly order from Intel, not some stupid IPEX.


Agreed, especially considering the volume of CPUs,etc that Newegg buys.

curnel_D 03/09/2010 4:08 AM
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mianmian :
Newegg got a sort of Man-in-the-Middle attack ....It should directly order from Intel, not some stupid IPEX.


Newegg is a grey market distro. The primary reason why they can sell their products so low is because of the fact that they buy from them.

liquid0h 03/09/2010 4:09 AM
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hopiamani 03/09/2010 4:15 AM
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I am pretty sure someone at IPEX is gonna lose their job over this.

tipmen 03/09/2010 4:15 AM
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Great to see this from a company dealing with this problem fast and treating the affected customers with great care :D GOOD JOB newegg!

Gandalf 03/09/2010 4:27 AM
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I wonder how many customers realized that didn't have the real INTEL processor?

robwright 03/09/2010 4:30 AM
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It's kind of sad since the site (I can't even write the name/URL without getting sick to my stomach) that first reported that D&H was responsible for the shipment of bad chips is still sticking to its story and hasn't updated the original article absolving them of the situation.

Fantastic reporting, Kyle! Good work, guys. Have fun with that lawsuit....

curnel_D 03/09/2010 4:36 AM
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robwright :
It's kind of sad since the site (I can't even write the name/URL without getting sick to my stomach) that first reported that D&H was responsible for the shipment of bad chips is still sticking to its story and hasn't updated the original article absolving them of the situation. Fantastic reporting, Kyle! Good work, guys. Have fun with that lawsuit....


I feel the same way. I can't believe they haven't issued that apology. I understand reporting the facts is important, but the brutality against DnH that they exhibited without letting all the facts come out was just crazy.

Brent_NC 03/09/2010 4:51 AM
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If D&H had an once of sense, they would have stated that the shipment in question did not originate with them and would have worked with Newegg/Intel from the start. Saying this on their own site, as well as follow up emails/communications to the various news sites posting information on this topic. Instead, they layered up and looked guilty as hell in the process.

I hate that D&H took an image beat down on this one, but in the future taking a different approach to dispel any rumors or assumptions would probably be in their best interest.

Now it looks like the internet gets to kick IPEX in the family jewels for a while.

Brent_NC 03/09/2010 4:53 AM
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By the way, that is "Ounce" not "Once". Fat fingered it.

onlineseeker 03/09/2010 4:57 AM
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Ipex is owned by:

Entity Name: IPEX INFOTECH, INC.
Entity Number: C1788610
Date Filed: 08/07/1996
Status: ACTIVE
Jurisdiction: CALIFORNIA
Entity Address: 48295 FREMONT BLVD
Entity City, State, Zip: FREMONT CA 94538
Agent for Service of Process: MARCEI LIANG
Agent Address: 48289 FREMONT BLVD
Agent City, State, Zip: FREMONT CA 94538

Now lets look at ASI:

48289 Fremont Blvd.
Fremont, CA 94538
Phone: 510-226-8000
Fax: 510-226-8858
Toll Free: 800-2000-ASI

robwright 03/09/2010 5:03 AM
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brent_nc :
If D&H had an once of sense, they would have stated that the shipment in question did not originate with them and would have worked with Newegg/Intel from the start. Saying this on their own site, as well as follow up emails/communications to the various news sites posting information on this topic. Instead, they layered up and looked guilty as hell in the process. I hate that D&H took an image beat down on this one, but in the future taking a different approach to dispel any rumors or assumptions would probably be in their best interest.Now it looks like the internet gets to kick IPEX in the family jewels for a while.



Come on, dude. Seriously? I'm at a conference right now with the D&H executives. As soon as this mess hit the fan, we called them and tracked them down and got a statement -- which is EXACTLY what HardLibel should have done when they got that "inside information." But they didn't.

Shouldn't it be the news sites responsibility to call D&H and find out their side of the story? Why is it D&H's responsibility to have to call every news site/magazine/newspaper/etc. and do that? They sent a cease & desist letter and went on record saying it was completely false. If you think that makes them look guilty as hell, well then I respectfully disagree and seriously question your judgment regarding media and public relations.

zoemayne 03/09/2010 5:08 AM
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kewlx 03/09/2010 5:24 AM
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elel 03/09/2010 5:26 AM
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Sounds like the EGG!

G-Systems 03/09/2010 5:37 AM
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zoemayne :
IPEX is probably a scapegoat. Newegg prob has too much money(or too good of deals?) put into D&H to terminate their relationship.



I don't normally partake in thumbing someone down, but why is it that every successful business (Microsoft included) is automatically guilty when they are involved in a mistake. Everything is not a conspiracy...

Gin Fushicho 03/09/2010 6:15 AM
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zendax 03/09/2010 6:49 AM
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liquid0h :
Ah crap, figures I'd get this news literally weeks after I just installed a 920 from Newegg...



The counterfeit chips are completely non-functional. The box and label are surprisingly well done, but the moment you actually open the package it's immediately obvious you have a fake.

zendax 03/09/2010 6:50 AM
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Gandalf :
I wonder how many customers realized that didn't have the real INTEL processor?



None. The counterfeit parts aren't even working chips. They did a good job on the box, but everything inside is obviously fake parts.

anamaniac 03/09/2010 8:14 AM
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robwright 03/09/2010 8:17 AM
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This is from Kyle on HardLibel's forum: "We got something wrong, we have corrected it, apologized, and will be moving on. If I had it all to do over again, I would do it the same. Our goal is to get you guys reliable information through our sources. I am still unsure as to why our information was incorrect on the disty. Our main focus in this was to get Newegg to tell its customers the truth. Do you think that would have happened without our involvement? Dunno, but I am leaning heavily one way in that discussion."

What unbelievable bullshit. Seriously, just admit you screwed up and got the facts wrong and apologize to D&H, whose name you dragged through the mud and stubbornly refused to admit you were wrong. Don't try to spin this in your favor and present some self-important BS about how you helped get the truth out. All HardLibel did was engage in the same kind of bad Internet journalism we see all too much these days. Go ahead, ask Kyle if he ever confirmed what his "source" said about D&H. Ask him if he ever actually called D&H for a comment. You'll be waiting for a straight answer for a long time...

curnel_D 03/09/2010 9:24 AM
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robwright :
This is from Kyle on HardLibel's forum: "We got something wrong, we have corrected it, apologized, and will be moving on. If I had it all to do over again, I would do it the same. Our goal is to get you guys reliable information through our sources. I am still unsure as to why our information was incorrect on the disty. Our main focus in this was to get Newegg to tell its customers the truth. Do you think that would have happened without our involvement? Dunno, but I am leaning heavily one way in that discussion."What unbelievable bullshit. Seriously, just admit you screwed up and got the facts wrong and apologize to D&H, whose name you dragged through the mud and stubbornly refused to admit you were wrong. Don't try to spin this in your favor and present some self-important BS about how you helped get the truth out. All HardLibel did was engage in the same kind of bad Internet journalism we see all too much these days. Go ahead, ask Kyle if he ever confirmed what his "source" said about D&H. Ask him if he ever actually called D&H for a comment. You'll be waiting for a straight answer for a long time...


I don't think I've ever looked at H as a realistic Journalist site, and I imagine most people feel the same way. The entire site seems incredibly biased a majority of the time, and 95% of their postings are just direct links to other legitimate news sites.
The only reason I ever visit the site is because it's a fairly decent compilation of all of the news articles for the day.


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