Intel Comments on Fake Processors

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[H]ard|OCP is reporting that Intel commented on the fake processors distributed by Newegg late last week:

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.

Newegg has yet to comment on Intel’s statement, which seems to contradict Newegg’s initial statement on Friday:

Newegg is aware of a shipping error that occurred with certain recent orders of the Intel Core i7-920 CPU. After investigating the issue internally it appears one of our long term partners mistakenly shipped a small number of demo boxes instead of functional units. Our customer service team has already begun proactively reaching out to the affected customers. In line with our commitment to ensure total customer satisfaction, we are doing everything in our power to resolve the issue as soon as possible and with the least amount of inconvenience to our customers.

Once Newegg has fully investigated these incidents, they probably will give a more detailed explanation of how this happened. For now, stay tuned for more information. Big shout out to Kyle Bennett over at [H]ard|OCP for collecting these statements.

mdcomp

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Discussion
  1. Wolfenstein
    It's a matter of connecting the dots.

    You have to wonder why there are not a hundred or a thousand competitors that can actually compete with newegg.


    Not really. It's all volume. Newegg established themselves from the get-go with rock bottom prices. Were I to venture a guess, they operated at a loss for a while. Once established, their volume increased exponentially and they now profit from likely rather low margins. The hundred or thousand other people don't have the volume to remain viable at those prices, hence, Newegg normally beats everyone on (most) prices.
    I agree there is more to it, and once crap rolled far enough downhill (IPEX), it just got brushed under the rug from the public perspective. Not sure whats gone on behind closed doors, but no one is saying anything else.

    While ASI claims to be a completely separate entity than IPEX, I've also seen that information from their WHOIS record previously - that makes me think "why register your competitor's domain name?"

    Also, I've seen an unreliable source claim that they have some of the same people holding important business positions at both companies. Board members, president, or some other C-level people were claimed to allegedly be some of the same people at both companies. That is completely unsubstantiated, and I don't have any awareness of if its true or not. If you wanted to dig a bit more however, you may find some more reliable information in that department.

    That is just speculation I have read somewhere, which I don't recall. It's likely garbage, and should be taken with a grain of salt.

    But I think you are on the right track Wolfenstein. If you wanted to talk about anything else you dig up, and you have solid evidence supporting any claims you make - PM me your email address and you can write about it on Overclockers.com frontpage. We try to avoid speculation however, or taking a public stance based off of weak or unverified sources.
    A story from Channelweb. Asi denied owning IPEX, or being a partner of IPEX and they stated that they are a competitor. It was stated that they had some of the same share holders. I did a little digging.

    This is from doing a Who is on ipexinfo.com

    Administrative

    Contact, Technical Contact

    Administrative Contact, Technical Contact:

    Asia Source Inc.

    48289 Fremont Blvd

    Fremont, CA 94538

    US

    Now doesn't that set off some red flags.

    It is funny how this story just died. Intel investigated but refused to seek legal action and stated the ball was in Neweggs court. I have seen nothing else on this story which even raises more questions and suspicions.

    Why Intel won't seek legal action: This is my theory. The suppliers buy legit from intel, but also from the black market. Since these distributors have the same investors or use the same purchasing group. Intel knows by seeking legal action it could actually hurt their business relation.
    The processors actually were bought from a company named IPEX, not D&H, so they are off the hook on this issue. Newegg says they have dropped IPEX as a vendor they use any more too.
    I am a small time pc hardware salesman. I called newegg a couple of years ago and they assured me that they didn't use distributors, but bought direct and sold direct.

    Now I heard that sometimes they purchased items from D&H, but if D&H is their distributor, then D&H is hosing the crap out of me and every other small retailer.

    Often enough Neweggs retail prices are lower than my wholesale cost from D&H, Malabs, ASI, and Synnex. I have all 4 of them. Damn greedy Sobs.

    Anyway as far as the topic it is not surprising. In 08 D&H got in trouble with Microsoft for selling fake COA's and they were punished for it.
    Those that work for corporate firms would agree that in a crisis situations things go hectic, some overreact where others freeze up. I was part or a multi million dollar claim a few years back and we worked around the clock for several days trying to figure out what to say or rather what not to say to the end user, it dud cost us $5 mill in claims which we fortunately got back from our supplier...this reminds me of that, I'm sure the damages will be far less that what we had to fork out.

    Legal's 1st advice is to protect the company and suppress any bad press, that is their job, however the client is the party who directs them, so in this case it is not the lawyers fault per se but the client who advised them to go bark at the online editors.
    Bobnova
    Yup, mine too. Could have done without being lied to, but given a corporate scandal you have to assume that at least half the statements are false.


    Whenever I see the word corporate I just assume I'm being lied to. =D
    hokiealumnus
    I think what they meant by 'demo' is 'display unit'. The blanks used in retail stores that look like the product. They're used so shoplifters can grab and run but not with a real CPU. The release was ill-advised but didn't have ill intent except to get an explanation out there. They've agreed they are counterfeit now. Except for putting their foot in their mouth, they've handled this well. Their customers are being treated right and that's the most important part, at least IMHO.


    I agree, Newegg worded the release poorly, I think you nailed what they were trying to say in regard to "demo".

    The bottom line is Newegg has acted promptly to take care of duped customers. Their actions have spoken louder than any ill worded release.
    Yup, mine too. Could have done without being lied to, but given a corporate scandal you have to assume that at least half the statements are false.
    I think what they meant by 'demo' is 'display unit'. The blanks used in retail stores that look like the product. They're used so shoplifters can grab and run but not with a real CPU. The release was ill-advised but didn't have ill intent except to get an explanation out there. They've agreed they are counterfeit now. Except for putting their foot in their mouth, they've handled this well. Their customers are being treated right and that's the most important part, at least IMHO.
    /generic PR

    They didn't really say anything of value. Who knows if they'll ever figure out who really did it.

    People are pointing fingers left and right though lol