| Type | Private |
|---|---|
| Industry | Computers Computer hardware Computer software Consumer electronics Consumer (final) goods |
| Founded | 2001 |
| Headquarters | City of Industry, California, U.S |
| Key people | Fred Chang (global CEO) S.C. Lee (CEO of Newegg North America) Bernard Luthi (SVP of Marketing, Web Management) Robert Bellack (CFO) |
| Products | Computer hardware, software, peripherals, gaming, electronics, accessories, DVDs, housewares, appliances, tools, furniture, office products and more |
| Revenue | US$2.5 billion (2010)[1][2] |
| Net income | US$24.9 million (2009)[3] |
| Employees | 2,400 (2010) [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]
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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] In 2011 it officially withdrew its registration for filing for an IPO, saying it would continue to explore alternative options for funding.[9]
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." [10] 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." [11]
In 2011, Newegg added three independent Board of Director members: Lycos co-founder Bill Townsend, Tim Maudlin and Greg Moore.
In March 2010, Newegg sold 300 counterfeit Intel Core i7-920 CPUs.[12] The problem was first exposed by a member of the website HardOCP, who posted about receiving the fake CPU on the site's forum.[13] 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.[14] 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.[15]
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.[16] The company has no relation to the venerable Egghead Software chain that was active from 1984-2001.
United States
Canada
China
Newegg has been the recipient of various awards, including:
| Ranking / Details | Who | When |
|---|---|---|
| Ranked 12th Largest Consumer Electronic Dealer | Top 100 TWICE / Stevenson Company [21] | (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 [22] | (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[23] | 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 [24] | 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 |