UpdatedIntel says it's investigating the sale of fake desktop processors by online electronics retailer Newegg in a scandal that's prompting outrage among customers and recriminations among sellers.
The counterfeit Core i7-920 processor package was so crudely put together that it would have been easy to spot even by non-technical buyers. According to a user named Nixposting to a forum(http://hardforum.com/showthread.php?t=1500534) on Hardforum.com, the outside box was delivered open and misspelled the word "socket" as "sochet". The label also contained a poorly spoofed hologram.
Inside, a square-shaped piece of aluminum masqueraded as the processor, and a fake mold was designed to appear as a fan. ThisYouTube video(http://www.youtube.com/watch?v=eDU7Xoju4LM) purports to show the entire contents as delivered to one customer.
In a statement issued in response to the incident, Intel warned customers that fake gear was indeed passed off as official Intel processors.
"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 statement read. "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."
For its part, Newegg said it was conducting its own investigation into the questionable Intel CPUs.
"Initial information we received from our supplier, IPEX, stated that they had mistakenly shipped us 'demo units'," a statement issued Monday evening read. "We have since come to discover the CPUs were counterfeit and are terminating our relationship with this supplier."
Contrary to several published reports, D&H Distributing didn't supply Newegg with any of the CPUs in question, the statement said.
Hardocp.com and other websites reported that Newegg bought at least 300 processors from a certain distributor. The distributor has struck back, threatening legal action if the websites don't immediately retract the allegations.
Other computer users are also claiming to have received counterfeit i7-920 processors, including the person who postedthis separate YouTube video(http://www.youtube.com/watch?v=54tDqM5-6RU). ®
This article was updated to report new information provided by Newegg.
Apple uncovers child workers in its plants. iPod, iPhone, and Mac makers quizzed
Apple has found children were hired to help build some of its products, with one employer in its Mac, iPod and iPhone supply chain falsifying records.
Three facilities were found to have hired 11 workers aged 15 in countries where the minimum work age is 16, as part of the annual audit of companies adhering its supplier code of conduct.
Apple audited 102 companies in 2009, up from 83 the previous year, in China, the Czech Republic, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and the US.
In its resulting Supplier Responsibly report, Apple said: "One facility attempted to conceal evidence of historical cases of underage labor. Two other facilities presented falsified records that concealed evidence of violations of Apple's Code regarding working hours and days of rest. In all three cases, Apple auditors uncovered the falsified records by cross-referencing audit data."
Apple said the child workers are now of legal age, but the plants had been asked to provide a complete analysis of hiring processes to "clarify how underage people had been able to gain employment" and also develop management policies to ensure the practice doesn't happen again.
Overall, Apple said its audit uncovered 17 violations of the core principles underlying its supplier code of conduct. These included workers paying excessive recruitment fees and an incident where the supplier had used non-certified vendors for the disposal of hazardous waste.
You can read the full reporthere (warning:PDF)(http://regmedia.co.uk/2010/02/26/apple_supplier_report.pdf).
Microsoft 'offered sex and drugs to distributors' And the problem is?
As sales incentives go it's pretty extreme: one of Microsoft's Israeli distributors is claiming Microsoft offered resellers women for sex on a cruise ship.
The distributor, EIM Computerized Technologies, made the revelations about the alleged activities in papers filed with the Tel Aviv District Court.
The story in theGlobes(http://www.globes.co.il/serveen/globes/docview.asp?did=1000533636) media outlet goes like this: in May 2005, Microsoft invited EIM, one of its larger Israeli distributors, and other Israeli and Turkish distributors to enjoy a tour on a cruise ship.
On board it is alleged they were offered women for sex and offered what appeared to be drugs. The EIM people demurred.
The distie alleges: "For the pleasure cruise, Microsoft, or people on its behalf, invited women who provided sexual services for money. During this cruise, the Microsoft representative encouraged the participants in the cruise to party with these women, including receiving said services. They were also offered banned substances."
Microsoft subsequently terminated its distribution arrangement with EIM, claiming that EIM had filed wrong and fraudulent sales information, and this caused EIM revenues to fall by half. EIM claims it was victimised for not taking part in the orgy.
EIM then filed a lawsuit in Israel in 2006, seeking damages of 10.5m shekels (£1.8m).
Microsoft has filed a law suit of its own in Ireland, alleging breach of contract by EIM, and looking for £2.5m compensation.
Neither EIM nor Microsoft were able to immediately comment on this story.
