Newegg
Encyclopedia
Newegg.com Inc. is an online
retailer of computer hardware and software. It is based in City of Industry, California
. The company was founded by Fred Chang, a Taiwanese immigrant, in 2001.
Newegg also sponsors technology industry events and PC gaming
tournaments for titles including Counter-Strike
, Warcraft III
and Rome: Total War
. Newegg had a monthly Case Mod contest in 2005, where contestants submitted pictures, descriptions, and directions describing how to mod their computers into esoteric appearances and functionalities.
On September 28, 2009, Newegg Inc filed for an IPO (initial public offering
) with the U.S. Securities and Exchange Commission. The filing also stated that newegg.com has been profitable every year since 2001 and generated sales of $2.1 billion in 2008. The company's largest outside shareholder is New York-based venture-capital firm Insight Venture Partners
. The IPO is being managed by JP Morgan, Bank of America, Merrill Lynch and Citi.
On February 10, 2010, Newegg was sued by three former employees accusing it of numerous labor and business abuses, such as violating "a slew of labor laws, overwork[ing] and abus[ing] immigrant workers and order[ing] employees to hack into competitors' computer systems." Newegg strongly denies all allegations in the lawsuit. In an official statement, the company stated:
"Newegg is aware of the allegations made by two former employees and a former consultant. Newegg has always taken pride in the fairness of our labor and hiring practices and to ethical business practices toward our competitors, vendors and most of all, our valued customers. We have always been fully committed to compliance with all applicable laws and regulations. Accordingly, we strongly deny the assertions made by the individuals filing this lawsuit, and intend to defend ourselves vigorously and thoroughly against claims that have neither merit nor basis in fact."
In 2011, Newegg added three independent Board of Director members: Lycos co-founder Bill Townsend
, Tim Maudlin and Greg Moore.
, who posted about receiving the fake CPU on the site's forum. Newegg at first released a statement saying that the processors were "demo units", but later said that they discovered that the processors were actually counterfeit, and that the company was terminating its relationship with one supplier in response. The company offered replacement units to the customers who received a counterfeit processor, while Intel stated that they had been made aware of the problem and were investigating as well.
chain that was active from 1984-2001.
Canada
China
ONLINE
ONLINE is a magazine for information systems first published in 1977. The publisher Online, Inc. was founded the year before. In May 2002, Information Today, Inc. acquired the assets of Online Inc....
retailer of computer hardware and software. It is based in City of Industry, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. The company was founded by Fred Chang, a Taiwanese immigrant, in 2001.
History
Key players in Newegg's design and execution were Fred Chang (founder and then-CEO), and Ken Lam, (former Vice Chairman of the Board). Chang was Newegg's chairman and CEO until August 1, 2008, when it was announced that Chang would step down as the CEO and chairman of Newegg while still being a member of Board of Directors and Executive Committee. He also retained his position as the President of Newegg's China operations. In time, ABS Computers reverted to a subsidiary of Newegg. In 2005, Newegg.com was named one of the Internet's Top 10 retailers by Internet Retailer Magazine with 2004 sales revenue of just under $1 billion. Newegg.com grew an additional 30% in 2005, bringing annual sales to approximately $1.3 billion. Newegg launched NeweggMall.com in July 2008, Newegg.ca in October 2008, and NeweggBusiness.com in August 2009. In 2009, it was listed as #234 on the Forbes America's Largest Private Companies list,. It launched Newegg Marketplace in 2010 and exceeded $2.5 billion in revenue that year. The company has about 2,500 employees.Newegg also sponsors technology industry events and PC gaming
Personal computer game
A PC game, also known as a computer game, is a video game played on a personal computer, rather than on a video game console or arcade machine...
tournaments for titles including Counter-Strike
Counter-Strike
Counter-Strike is a tactical first-person shooter video game developed by Valve Corporation which originated from a Half-Life modification by Minh "Gooseman" Le and Jess "Cliffe" Cliffe...
, Warcraft III
Warcraft III: Reign of Chaos
Warcraft III: Reign of Chaos is a real time strategy computer game released by Blizzard Entertainment on July 3, 2002 . It is the second sequel to Warcraft: Orcs & Humans, and it is the third game set in the Warcraft Universe...
and Rome: Total War
Rome: Total War
Rome: Total War is a PC strategy game developed by The Creative Assembly and released on by Activision...
. Newegg had a monthly Case Mod contest in 2005, where contestants submitted pictures, descriptions, and directions describing how to mod their computers into esoteric appearances and functionalities.
On September 28, 2009, Newegg Inc filed for an IPO (initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
) with the U.S. Securities and Exchange Commission. The filing also stated that newegg.com has been profitable every year since 2001 and generated sales of $2.1 billion in 2008. The company's largest outside shareholder is New York-based venture-capital firm Insight Venture Partners
Insight Venture Partners
Insight Venture Partners is a New York-based private equity and venture capital firm founded in 1995 by Jeff Horing and Jerry Murdock. The firm focuses exclusively on software and Internet-enabled businesses and currently has a capital base of approximately $5 billion.The firm’s Executive Advisory...
. The IPO is being managed by JP Morgan, Bank of America, Merrill Lynch and Citi.
On February 10, 2010, Newegg was sued by three former employees accusing it of numerous labor and business abuses, such as violating "a slew of labor laws, overwork[ing] and abus[ing] immigrant workers and order[ing] employees to hack into competitors' computer systems." Newegg strongly denies all allegations in the lawsuit. In an official statement, the company stated:
"Newegg is aware of the allegations made by two former employees and a former consultant. Newegg has always taken pride in the fairness of our labor and hiring practices and to ethical business practices toward our competitors, vendors and most of all, our valued customers. We have always been fully committed to compliance with all applicable laws and regulations. Accordingly, we strongly deny the assertions made by the individuals filing this lawsuit, and intend to defend ourselves vigorously and thoroughly against claims that have neither merit nor basis in fact."
In 2011, Newegg added three independent Board of Director members: Lycos co-founder Bill Townsend
Bill Townsend
Bill Townsend is a businessman who helped build several Internet properties, most notably search engine Lycos, social networking pioneer sixdegrees.com, whose intellectual property formed the basis of LinkedIn, GeoCities and Deja Bill Townsend (born 1964) is a businessman who helped build several...
, Tim Maudlin and Greg Moore.
Counterfeit Intel processors
In March 2010, Newegg sold 300 counterfeit Intel Core i7-920 CPUs. The problem was first exposed by a member of the website HardOCPHardOCP
[H]ard|OCP is an online magazine that offers news, reviews, and editorials that relate to computer hardware, software, modding, overclocking and cooling, owned and operated by Kyle Bennett, who started the website in 1997.- Product Reviews :[H]ard|OCP is known for reviewing products and...
, who posted about receiving the fake CPU on the site's forum. Newegg at first released a statement saying that the processors were "demo units", but later said that they discovered that the processors were actually counterfeit, and that the company was terminating its relationship with one supplier in response. The company offered replacement units to the customers who received a counterfeit processor, while Intel stated that they had been made aware of the problem and were investigating as well.
Name
Traditionally, the egg is a symbol of birth and unlimited potential. The founders selected “Newegg” as the company name to signify new hope for e-commerce during a period when e-commerce businesses were struggling to survive. The company has no relation to the venerable Egghead SoftwareEgghead Software
Egghead Software was founded by Victor Alhadeff in 1984 as a computer software retail company. It grew into a chain with over 200 stores in the United States, and a few in Canada, primarily located in shopping malls...
chain that was active from 1984-2001.
Storefronts
- Newegg.com — principal site, for United States customers
- Newegg.ca — for Canadian customers
- NeweggBusiness.com — for corporations, resellers, schools and non-profit organizations (tax ID required)
- Newegg.com.cn — for Chinese customers
- ChiefValue.com — a sister website of Newegg.com which contains mainly computer products
- ABS.com — System builder owned by Newegg
- Rosewill.com — Newegg product brand
Warehouse Locations
United States- Industry, CaliforniaIndustry, CaliforniaIndustry is an industrial suburb of Los Angeles in the San Gabriel Valley region of Los Angeles County. Home to over 2,500 businesses and 80,000 jobs, but only 219 residents at the 2010 census - down from 777 residents as of the 2000 United States census - the city is almost entirely industrial...
- South River, New JerseySouth River, New JerseySouth River is a Borough in Middlesex County, New Jersey, United States. As of the United States 2000 Census, the borough population was 15,322....
- Memphis, TennesseeMemphis, TennesseeMemphis is a city in the southwestern corner of the U.S. state of Tennessee, and the county seat of Shelby County. The city is located on the 4th Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers....
Canada
- Mississauga, OntarioMississauga, OntarioMississauga is a city in Southern Ontario located in the Regional Municipality of Peel, and in the western part of the Greater Toronto Area. With an estimated population of 734,000, it is Canada's sixth-most populous municipality, and has almost doubled in population in each of the last two decades...
China
- Shanghai, China
- Changning District
- Xuhui District
- Luwan District
- Hongkou District
- Putuo District
- Baoshan District
- Minhang District
- Pudong District
Awards
Newegg has been the recipient of various awards, including:- Computer Shopper Shoppers' Choice Awards: 2011, 2008, 2007, 2006, 2005, 2004, 2003
- Forbes.com Best of the Web
| Ranking / Details | Who | When |
|---|---|---|
| Ranked 12th Largest Consumer Electronic Dealer | Top 100 TWICE / Stevenson Company | (2010) |
| Top 100 Fastest Growing Private Company in Los Angeles | Los Angeles Business Journal Los Angeles Business Journal The Los Angeles Business Journal, established c. 1979, is a weekly newspaper in Los Angeles, California, which covers general business news. According to the journal's website, it has over 12,000 online subscribers, and a weekly print circulation of 30,000... |
(2006, 2007) |
| Number 1 in Response Time and Consistency, Number 4 in Availability | Gomez.com Business Process Benchmark | (Oct 31, 2007) |
| Tied for 6th place in Top 100 Online Retail Satisfaction Index | Internet Retailer | (2007) Rankings |
| Ranks in Top U.S. Online Retailer—Overall #10, Computer/Electronics #5, Internet Only #2 | Internet Retailer | (2007)Rankings |
| Ranked 18th Largest Consumer Electronic Dealer | Top 100 TWICE / Stevenson Company | (2007) |
| Ranked #11 by Gross Dollar Growth and #17 by Revenue Growth in Inc. 5000 Privately Held Growth Companies | Inc. Magazine | (2007) |
| Ranked #234 in Forbes Largest Private Companies in America | Forbes Forbes Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week... |
10/28/2009 |
| Ranked in Top 10 Largest Internet Retailers | Internet Retailer | 8/6/2007 |
| Inc. Magazine's List of America's 500 Fastest-growing Private Companies | Inc. Magazine | 9/20/2006 |
| Ranked #10 on Internet Retailers Top 500 | Internet Retailer | 7/1/2006 |
| Top 100 CE Retailers | Top 100 TWICE / Stevenson Company | 5/8/2006 |
| Ranked #2 Among L.A.'s Largest Minority-Owned Businesses | Los Angeles Business Journal | 3/27/2006 |
| Ranks In Top 10 Among L.A.'s Fastest Growing Private Companies | Los Angeles Business Journal | 11/14/2005 |
| Ranks In Top 20 Among L.A.'s Largest Private Companies | Los Angeles Business Journal | 10/24/2005 |
| Ranked #9 On Internet Retailer's Top 400 | Internet Retailer | 8/1/2005 |
External links
- Newegg.com
- Newegg China
- Newegg Canada
- NeweggBusiness
- NeweggMall
- Chief Value
- ABS Computer Technologies
- Rosewill
- Eggxpert
- Inside Newegg — AnandTech.comAnandTechAnandTech is an online computer hardware magazine. It was founded in 1997 by then 15-year-old Anand Lal Shimpi, who is the current editor-in-chief and CEO. The web site is recommended as a good resource of hardware reviews for off-the-shelf components addressed to computer building enthusiasts...
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