- Newegg
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Newegg Inc. 
Type Private Industry Computers
Computer hardware
Computer software
Consumer electronics
Consumer (final) goodsFounded 2001 Headquarters City of Industry, California, U.S Key people Fred Chang (global CEO)
S.C. Lee (acting President)
Bernard Luthi (VP of Marketing, Web Management and Customer Service)
Rich Quiroga (VP Finance)Products Computer hardware, software, peripherals, gaming, electronics, accessories, DVDs, housewares, appliances, tools, furniture, office products and more Revenue 
US$2.3 billion (2009)[1][2]Net income US$24.9 million (2009)[3]Employees 2,168 (2009) [2] Website newegg.com 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.[4]
Contents
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.[5][6] He also retained his position as the President of Newegg's China operations.[5][6] In time, ABS Computers reverted to a subsidiary of Newegg.[7] 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,[2]. 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 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.[8]
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." [9] 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." [10]
In 2011, Newegg added three independent Board of Director members: Lycos co-founder Bill Townsend, Tim Maudlin and Greg Moore.
Counterfeit Intel processors
In March 2010, Newegg sold 300 counterfeit Intel Core i7-920 CPUs.[11] The problem was first exposed by a member of the website HardOCP, who posted about receiving the fake CPU on the site's forum.[12] 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.[13] 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.[14]
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.[15] The company has no relation to the venerable Egghead Software 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)[16]
- 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
Canada
- Mississauga, Ontario
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,[17] 2007,[18] 2006, 2005, 2004, 2003
- Forbes.com Best of the Web[19]
Rankings Ranking / Details Who When Ranked 12th Largest Consumer Electronic Dealer Top 100 TWICE / Stevenson Company [20] (2010) Top 100 Fastest Growing Private Company in Los Angeles Los Angeles Business Journal (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 [21] (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[2] Forbes 10/28/2009 Ranked in Top 10 Largest Internet Retailers Internet Retailer[22] 8/6/2007 Inc. Magazine's List of America's 500 Fastest-growing Private Companies Inc. Magazine 9/20/2006 Ranked #10 on Internet Retailer's Top 500 Internet Retailer 7/1/2006 Top 100 CE Retailers Top 100 TWICE / Stevenson Company [23] 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 References
- ^ Fact Sheet
- ^ a b c d Newegg.com
- ^ SEC filing
- ^ Quinn, Michelle (2007-12-29). "Branching out from techie heaven". LA Times. http://articles.latimes.com/2007/dec/29/business/fi-newegg29. Retrieved 2008-11-21.
- ^ a b "Newegg Announces Major Change in Executive Leadership | Market Wire | Find Articles at BNET". Findarticles.com. 2008-08-01. http://findarticles.com/p/articles/mi_pwwi/is_200807/ai_n27956553/. Retrieved 2010-04-30.
- ^ a b "Fred Chang, Founder and Chairman of the Board, Newegg Inc., City Of Industry, CA". Spoke. http://www.spoke.com/info/p6XkF64/FredChang. Retrieved 2010-04-30.
- ^ Hesseldahl, Arik (2005-11-18). "Where the Tech Buffs Shop". BusinessWeek. http://yahoo.businessweek.com/technology/content/nov2005/tc20051118_333155.htm. Retrieved 2006-12-22.
- ^ Wahba, Phil (2009-09-28). "UPDATE 1-Venture-owned e-commerce co Newegg files for IPO". Reuters. http://www.reuters.com/article/marketsNews/idUSN288093020090928.
- ^ Raft of Labor Abuses Alleged at Newegg
- ^ Newegg Press Release on Lawsuit
- ^ NewEgg sells over a hundred counterfeit Core i7-920 CPUs, KIRFers pump their fists
- ^ Intel, Newegg Investigate Sale Of Fake Chips
- ^ Newegg Axes Supplier Over Fake Intel Chips
- ^ Newegg probes shipments of fake Intel chips
- ^ "Newegg.com". http://www.newegg.com/Info/AboutUs.aspx. Retrieved 2009-12-15.
- ^ "How do I create a NeweggBusiness Account?". http://www.neweggbusiness.com/HelpInfo/FAQDetail.aspx?Module=29#xdetail759. Retrieved 2010-11-28.
- ^ "22nd Annual Shoppers' Choice Awards". Computer Shopper (US magazine). http://computershopper.com/feature/22nd-annual-shoppers-choice-awards8. Retrieved 2008-12-06.
- ^ "21st Annual Shoppers' Choice Awards". Computer Shopper (US magazine). http://computershopper.com/feature/2007-21st-annual-shoppers-choice-awards-best-places-to-buy. Retrieved 2008-12-06.
- ^ "Forbes.com Best of The Web". Forbes.com. http://www.forbes.com/bow/b2c/category.jhtml?id=10. Retrieved 2008-12-06.
- ^ http://www.twice.com/article/244149-Top_100_Methodology_How_We_Crunched_The_Numbers.php
- ^ http://www.twice.com/article/244149-Top_100_Methodology_How_We_Crunched_The_Numbers.php
- ^ "Newegg Among Top 10 Largest Internet Retailers". http://www.internetretailer.com/top500/list.asp.
- ^ http://www.twice.com/article/244149-Top_100_Methodology_How_We_Crunched_The_Numbers.php
External links
Categories:- Online retail companies of the United States
- Companies based in Industry, California
- Retail companies established in 2001
- Deal of the day services
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