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Tuesday March 9, 2010
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By now, you've probably seen many of the homemade videos from people who ordered an Intel Core i7-920 processor from Newegg.com and received a bogus processor and hunk of plastic shaped like a fan. Newegg has thrown
supplier IPEX Infotech of Freemont [corrected] California under the bus for this fiasco; in a statement released to Information Week, the retailer said, "We have since come to discover the CPUs were counterfeit and are terminating our relationship with this supplier."
PCMag.com did not order one. But luckily for us, my
neighbor, Microsoft TechNet columnist Greg Steen, just happened to be one of the lucky 200 or so buyers, and he let me borrow it for the day. As you can see, the box looks very real, and the weight of the package is perfect. Lots more images after the jump!

The labels look very good; notice the
embossed fake hologram in the left corner. But you can also see that that the word "socket " is spelled wrong. "Sochet"?

Looking into the package, it appears that there is an actual CPU inside.

From
this angle, it looks like you're seeing the top of the CPU cooler.  When we opened the box, we discovered that what we thought was a CPU fan was
actually a sticker on a piece of molded plastic. The
plastic "fan" was the approximate shape of the proper cooler, but it was
hardly Socket 1366.  The CPU looked official at
first glace, although the staple should have warned us.  When
turned it over, we quickly discovered that this was not a real processor.
It looked and felt a lot like lead.  Oh, yeah, this looks legit.  This
processor is all set for use "ina Desktop PC."
Photos by PJ Jacobowitz
Posted By:
Dan Evans
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March 10, 2010 10:07 AM
Wow - this took some effort - especially the lead CPU :P How many of these went out world-wide? Will definitely be an interesting story to watch.
March 10, 2010 10:27 AM
Even the French text is mangled beyond belief.
March 10, 2010 10:38 AM
hahah why would someone wanna unbox a fake product...i dont get it but the products amazing cant wait to REALLY unbox one
March 10, 2010 11:37 AM
Sounds like someone somewhere made a case, or pallet, or whatever of these and did a quick-switch to get a case of the real things.
March 10, 2010 11:56 AM
The french is actually not mangled. Hmm interesting!!
March 10, 2010 12:01 PM
really, if you're going to the effort of manufacturing and printing all these boxes and items, at least spell it right so on the OUTSIDE is looks legit.
how lazy can they be, bring more than 1 person in on the proofing...
March 10, 2010 12:12 PM
What difference does it make how it was spelled? It was good enough to get past the employees of NewEgg, and that is all that mattered. once the first customer received one, the jig was up and the game was over. Mission accomplished. Damage done. Too bad this distributor will never be brought to justice.
March 10, 2010 12:18 PM
William:
Wow, I can't believe I have to explain this..
We want it un-boxed because we want to know how it fooled so many people.
From the people that imported it, to the OEM company that signed, approved, paid for the fake ones and handed over a check for hundreds (if not thousands) of boxes full of trash.
You would think that somewhere, someone, would have actually opened a box to approve long before it got shipped to retail customers.
Anyway, the point of un-boxing wasn't "oh wow i am so excited to buy this and can't wait to see what's inside!!"
March 10, 2010 1:21 PM
Sounds like this might be the same processor used in a P-P-P-Powerbook!
http://www.zug.com/pranks/powerbook/
March 10, 2010 1:26 PM
Is this made in China? well, I may think twice before buying anything from newegg.com again. They don't do any QA at all from their side. I guess newegg.com is another Toyota story. Did they grow too quick beyond their control?
March 10, 2010 1:35 PM
I wonder if any Customs agents looked at them. Well, they're violating trademarks but they're not really fake processors... more like artist's impressions of a processor.
March 10, 2010 1:40 PM
Wowsers. I saw stuff like this being hawked out of car trunks in the ghettos of Los Angeles. (People were buying, too.) This usually stings the people who can least afford it.
March 10, 2010 1:40 PM
$10 says the French disclaimer was just the English disclaimer run through Babelfish.
March 10, 2010 1:42 PM
I also heard the 'security tape' on the box was fake as well. The anti-tamper text wasn't part of the tape, but printed ON the box!
March 10, 2010 1:46 PM
The reason why it was probably easy to get through was they may have switched out the center portion of a pallet with these fake ones leaving a few rows of real ones around them. The person receiving them see's that they are real and all the boxes look the same so why check every single one. I bet now they will be inspecting them one by one.
March 10, 2010 1:50 PM
What's with the NewEgg hate? It's not like they knowingly sent out fakes. From what I read, it was distributed from another factory. I have never had a problem with NewEgg- they ship quickly and their customer service is top notch. Comparing them Toyota? Puh-lease. I missed the part where they or Intel tried to cover up exploding chips that killed people and sent them to the unsuspecting public regardless!
March 10, 2010 1:53 PM
@Doug: This isn't quite the same thing as the Toyota issue. For this to match you would either still drive toyota but ban your dealership or you would stop buying intel.
Neweggs Q&A department did nothing wrong, you cannot open a chip box for inspection without losing the chip or at least retail value vs openbox value of the chip.
The point of this whole article was to show "look everything appeared legit until you opened the box".
March 10, 2010 1:55 PM
@Jeff S : The french disclaimer looks mostly legit, but it may be only because we are used to badly translated texts on tech products...
3 errors though : "solution" shouldn't be plural, the second c in "conçue" misses a cedilla, and they used the wrong accent on "limitée".
March 10, 2010 1:56 PM
depending on when these were created, they may even have needed an inside man at intel or the printing house that makes the packaging in order to create such a close copy. My guess is due to the mis-spellings they are working of images instead of .eps files. Otherwise you would have had an exact replica of the box. This means that some other packaging manufacturer somewhere knew this was going on, or said facility had an inside man that could do this run of packaging undetected. Syndicate level crime?
March 10, 2010 1:56 PM
Nothing against the Chinese people as a whole but against these particular Chinese that did this....DAMN! They will even sell their own people fake baby formula that eventually kills the babies that it is fed to in order to make a buck! Then their government makes a raid to bust that ring of counterfiters up for show to the international community. They sieze the fake formula and then.....wait for it......wait for it....PUT IT BACK ON THE MARKET THEMSELVES!!!!!!!!!!!!!!!!!! These people don't care about anything else except themselves. If they can do this with baby forumla then a bunch of i7 procs is no sweat.
March 10, 2010 1:58 PM
For those hating on NewEgg, this is not their fault. Check out their rating on ResellerRatings.com and you will see how good they are. They were duped, plain and simple, and they can hardly be blamed for it. You try running a company that does hundreds of thousands of orders a month and checking each and every pallet so thoroughly as to make sure that a box that upon cursory inspection looks legit isn't filled with garbage. They trust their suppliers not to ship them this junk, and when stuff like this gets discovered, proper action is taken. I guarantee you that NewEgg sent out real processors to everyone who initially received a fake one and they did it for free. Try buying something from NewEgg (as I have, multiple times) and see for yourself how well-run this company actually is before you trash them out.
March 10, 2010 2:00 PM
So, when will you publish some fake benchmarks for it? :o)
March 10, 2010 2:07 PM
Doug is obviously a competitor or simply clueless.
Newegg isn't a QA shop. Comparing them to Toyota is like comparing a restaurant to a farm. They sell things.. usually quite cheaply.. and you get it very quick. Everything I've heard says that Newegg was proactive on this from the start, contacting customers on their own to tell them of the problem, and offering to correct it immediately.
March 10, 2010 2:12 PM
LOL@Markus !!
March 10, 2010 2:15 PM
Ever seen "High Density" memory for sale on eBay? It is absolute garbage but makes the seller US$ in a land where the average worker makes US$5-10 per day.
The diverted i7 chips will go to a chinese computer manufacturer who will pay US$500-750 for each. There are probably 1,000-2,000 of these now in circulation. Probably cost 5 per box to to fake including bribes, net profit ... US$450,000 - US$1.2Million. So why are you surprised? And the likelyhood of discover and conviction is absolutely zero in China.
So why are we surprised? The miracle to me is that we don't get more junk like this out of China, Taiwan, Malaysia.
March 10, 2010 2:18 PM
Im wonder if you can find the real chips on ebay. This is a pretty funny heist.
As a company Newegg does it right for their customers. Great customer service, I don't see this as their fault at all.
March 10, 2010 2:21 PM
NewEgg is very shadey. One of my friends worked for a power supply manufacturer and NewEgg would knowingly purchase mislabeled 300W power supplies and resell them at 450W. Remember if the deal is too good to be true it usually is.
March 10, 2010 2:24 PM
@Markus I imagine they'll show up very early next month. ;)
March 10, 2010 2:25 PM
No hating on them, but would it be fair to say they got NewEgg on their faces?
March 10, 2010 2:44 PM
as long as the overclocking stays under 621F (327C) degrees the lead wont melt ;-)
March 10, 2010 2:49 PM
By the way, the company is in the city of "Fremont, Ca" not FREEMONT...
March 10, 2010 2:51 PM
Svenbot, you just slinging muck! NewEgg has been a upright retailer for more years than you've probably been around. The best thing for idiots like you to do is keep quite, that way people will mistake you for someone intelligent.
March 10, 2010 2:54 PM
This sort of stuff happens more often than you realize. My company purchased a couple dozen computers from Lenovo a few years ago. The computer boxes we received looked genuine from the outside. When we opened them up, they were filled with bags of rice that were carefully measured and packed to make someone think a real computer was inside.
March 10, 2010 3:04 PM
Send them to Apple they would never know
March 10, 2010 3:12 PM
Svenbot is a lying troll. No substantiation, no link, no proof, no credibility.
I have been doing business with NewEgg for years. I have a huge pile of purchase orders from them. Not ONCE have they ever misled me as to what they were going to ship. Not ONCE have they shipped me anything but what was promised. They handle returns gladly and treat their customers right.
They may not have the most user-friendly policies but they DO tell you RIGHT UP FRONT what their policies are, and they STICK to them.
Really the best thing about newegg is the user reviews. I have saved myself a lot of frustration and wasted time by reading the reviews. I have submitted poor reviews of their products, and they have not hesitated to put them up.
March 10, 2010 3:13 PM
The manufacturing process involves individual measurement of each box. I suppose the LED was used to get the weight close to that of the original one.
March 10, 2010 3:28 PM
I'm shocked you spelled Fremont wrong...
March 10, 2010 3:31 PM
Thanks JP! I had totally forgotten about the P-P-P-Powerbook! Ahh, good times :)
Guy Tanzer: *slap* No, no it is not.
March 10, 2010 3:32 PM
Who cares!! As long as NewEgg stands behind their offering, I don't really need to know what a piece of lead looks like or whether the hunk of plastic is capable of cooling the nonworking cpu!
Now if you could tell me who actually pocketed the money on the distant end of the transaction, then this would be a compelling story.
March 10, 2010 3:33 PM
This is what ACTA should be about, instead of pretending it is when it is not about counterfeiting, it's about copyright infringement.
March 10, 2010 3:57 PM
I've been using NewEgg for almost 10 years now and I don't have a single complaint about them. They're my preferred online company - anything I need that they stock, I buy from them. Why? Because they treat their customers right, they ship products quickly, they have a great return policy, and they never, ever give me any crap when I need to RMA a defective memory stick or a failing hard drive.
Just the fact that we have so many people defending a corporate entity (NewEgg, in this case) in the comments of this article speaks volumes about that company's integrity and customer loyalty. People like NewEgg, and they feel obliged to defend it. You don't often see that kind of loyalty towards online retailers.
I've dealt with a lot of shoddy, shady companies online over the last decade. NewEgg is by far the most respectable online retailer I have ever used.
I would bet that few, if any, customers receiving one of these fake chips is going to walk away from the ordeal unhappy with the service and support they receive from NewEgg.
March 10, 2010 4:13 PM
How many megahertz are they?
Prolly faster than AMD
March 10, 2010 4:31 PM
Interesting article. When I first saw the word "counterfeit" as mentioned by Newegg I thought there were actual working parts: either test rejects that found their way out of the factory, or even working chips from a non-intel fab (is that possible?). This article shows that they were just props.
March 10, 2010 4:31 PM
Writing [CORRECTED] next to the name of my hometown when it's still spelled wrong doesn't make it correct, guys. :D
That said, very interesting, thanks for the pics.
March 10, 2010 4:47 PM
I want one of these!
March 10, 2010 5:03 PM
The only megahertz you're going to get from that is if you throw it at someone.
March 10, 2010 5:27 PM
You have not posted any performance tests. I am guessing being made of lead this processor has far more performance than the original Intel part. Da?
March 10, 2010 5:40 PM
Crazy heist. I can somehow imagine an Ocean 11-esque type of move to swap out the fake boxes for the real ones. Good job on NewEgg side to determine culprit and fix the problem. Made a few purchase with NewEgg and only gripe is that once or twice they've packaged my mailing slip with the CC information showing on the box. Aside from the NewEgg is topnotch.
March 10, 2010 6:06 PM
The mangled translation and the idea of scamming people sending obviously counterfeit goods with a pretty package stinks of made in China. But to the next level. I know it because I live there.
March 10, 2010 6:18 PM
On the bright side, now we know Newegg sells grey market products without disclosing it and can shop accordingly.
March 10, 2010 7:11 PM
I can not think of a more solid e-retailer than Newegg. Note the shady box label says Made in Costa Rica, so a respectable county gets slammed with a respectable e-retailer.
March 10, 2010 7:55 PM
Well I'll Tell You Newegg Has Possibly The Worst Dead Pixel Policy On Monitors They Sell!,Eight Dead Is Acceptable By Them!I Won't Buy One There.
March 10, 2010 8:48 PM
Despite all the headaches people have been having... if made by a friend this sure would be a hell of a prank. Hahaha.
March 10, 2010 9:38 PM
@Doug
How does it feel to be a tool to media and to have no common sense?
March 10, 2010 11:08 PM
Wow, that must have gone over like a lead i7.
In Newegg's defense, I did get one of those lead-core i7s, and they upgraded me to a brass one for no extra charge. Who else would even offer to do that? I'd definitely shop there again!
March 11, 2010 1:14 AM
The crooks that pulled this off must be writing code for Toyota on the side.
March 11, 2010 1:24 AM
NewEgg apparently bought "sideways" and were burned.
"Sideways buying" is when product is obtained from somewhere other than the upstream distributors.
All the large retailers, and even the wholesale distributors, do some sideways buying when there is money to be made. Who wouldn't? Only rarely (like this) has it actually caused much of a problem.
March 11, 2010 3:11 AM
Who would go through all the trouble of creating fake plastic fans, cpu's made of lead, the box, the materials...
March 11, 2010 3:34 AM
@SilentBoy741
Eh? I think most vendors that delivers a product you obviously didn't order will fix it for no extra charge. Else it would be a very bad vendor indeed. I wouldn't dream of ever paying extra for getting the right stuff delivered.
If you have ordered the wrong things, then you pay of course.
March 11, 2010 5:23 AM
oh no, what happened to Intel? at least AMD does not have any of its CPU counterfeited...
March 11, 2010 5:44 AM
crasybaby =heads up newegg no. 1. good scam ouch!
March 11, 2010 7:27 AM
Honestly, why would anyone even bother to produce something like this?
If it isn't even usable, it stands to reason that it will be busted the moment anyone opens the packaging, and any hope of selling more than a few batches is virtually zero.
You'd think it would cost more to put these into mass production than they would ever be able to make selling them - not to mention they'll probably be sued for it.
March 11, 2010 8:39 AM
OK, where is the benchmark of this new kind of CPU?
March 11, 2010 8:58 AM
The cooler works just fine. After installing and flipping the power switch,several hours later the whole thing was still room temperature.
March 11, 2010 9:19 AM
What I find amazing is that they go to the trouble of making and packaging the fake CPU, with a fan like that (which is obviously easier to make...)...
March 11, 2010 10:41 AM
For all those blasting the country of origin, where in all the "legitimate" articles on this issue is the country of origin mentioned?
For all anyone knows, the fake could of been made in California there in the good old U.S. of A.
March 11, 2010 11:15 AM
Interesting posts , prolly most people don use a spell cheeker.. they probably should before sending or improve some grammar skills before posting on sites where people are expected to Read and understand what they are reading. Nuff said on that. Chips, people are greedy and don't care if they screw people out of a few houndred dollars or thousands from the Corporations. Too bad there are many more like these out there doing the same thing with other products. I have been fortunate not to have been scammed and my sympathy is with those who were unsuspecting victims in this Tech Circus... Overclocking would seem out of the question I guess....
March 11, 2010 1:44 PM
First, those who created these scam processors were undoubtedly not anywhere in the official shipping chain. Too easy to trace back. The "manufacturer" of these fakes probably has accomplices in the shipping chain somewhere, who would have slipped these babies in unnoticed in pallets that are rarely examined closely. Newegg apparently was drop-shipping them, they never even saw them. Figuring the net profit on the black market sales of the real stolen processors could be thousands, this was a well-planned and executed robbery, and Newegg - and others in the chain - are victims. I'm betting the fake employees are long gone.
March 11, 2010 2:08 PM
Someone guessed rightly. I7-920's aren't just handled without static protection to avoid Zapping them. That's why it was possible to pull this stunt/con. Any QA involved didn't want that responsibility and liability on their shoulders.
March 11, 2010 2:31 PM
Well, it does look pretty cool for a fake product, I'll give it that much.
March 11, 2010 2:51 PM
get a better camera and take some better pictures i can barely make out the intricate details its hard to tell what i'm looking at without the caption
March 11, 2010 4:05 PM
There's one on eBay with a pretty funny FAQ:
http://cgi.ebay.com/Famous-Newegg-Genuine-Fake-Intel-Core-i7-Demo-Processor_W0QQitemZ330411508071QQcmdZViewItemQQptZCPUs?hash=item4cee0f8167
March 11, 2010 7:29 PM
all the language errors' juz look too familiar, and with >90% of things "made in china" today, anyone wanna second guess the 'origins' of these fakes?
March 11, 2010 10:26 PM
Brings a new meaning to "LEADing Edge Technology"
March 12, 2010 12:14 AM
Fremont is Spelled with One E not Two E's.
Fremont as in John C Fremont
http://en.wikipedia.org/wiki/John_C._Fr%C3%A9mont
March 12, 2010 3:25 AM
Monoprice (cheap cables etc.) has shut down for two weeks because of internal credit card fraud.
March 12, 2010 5:01 PM
These sound more like they were intended for use as phony display samples rather than to be sold as computer chips.
March 12, 2010 7:08 PM
I bet these fake processors will sell later on for a lot of money, just because people want to be a part of the hoax.
March 14, 2010 12:31 AM
So, the performance is about the same as the last intel release?
March 14, 2010 9:06 AM
Wow, a $500 fishing weight. Nice.
March 15, 2010 3:18 AM
Well, At least it won't overheat, so they were right not to supply a fan. Beats me how they could make such a great hologram, but not run a spell checker. Why aren't the suppliers being prosecuted?
April 27, 2010 12:22 AM
Actually, Toyota is worse than Newegg! I would still buy from Newegg, not from Toyota!! Those F**cking bastar*s do not stand behind their product. Buyer Beware!! F*ck Toyota - Scion - Lexus all three companies which are formally 1 company lick my sweaty nut sack.
April 29, 2010 1:03 AM
Newegg should scrutinize new suppliers.
Looks like they simply accept anyone without checking references.
booohoo poor newegg... lol