Online retailer NewEgg said late Monday that it has confirmed that a shipment of Core i7s were indeed fake, and that it had broken off its supply relationship with IPEX, the supplier. NewEgg also apologized.

Online retailer NewEgg said late Monday that it has confirmed that a shipment of Core i7s were indeed fake, and that it had broken off its supply relationship with IPEX, the supplier. NewEgg also apologized.

The fake Core i7s surfaced this weekend, and on Monday morning. At the time, reports had indicated that the fake processors were in fact so-called "demo units".

By Monday afternoon, NewEgg had rejected that story.

"Newegg is currently conducting a thorough investigation surrounding recent shipments of questionable Intel Core i7-920 CPUs purchased from Newegg.com," a spokesman said in a statement.

"Initial information we received from our supplier, IPEX, stated that they had mistakenly shipped us 'demo units,' the spokesman added. "We have since come to discover the CPUs were counterfeit and are terminating our relationship with this supplier. Contrary to any speculation, D&H Distributing is not the vendor that supplied us with the Intel Core i7-920 CPUs in question."

Intel confirmed again that they had seen the fake Core i7s. "Intel is getting samples to inspect and until then we can say that everything in the package appears fake," a spokesman said in an email late on Monday. "Some of the photos of the processor look like it is a casting and not even a real processor of any kind. Newegg has moved quickly to replace the suspect units."

Again, buyers should contact their point of purchase for a replacement, the Intel spokesman said.

NewEgg, for its part, said that it already had contacted affected customers, and would continue to reach out and replace the counterfeit parts.

"Newegg's top priority is to proactively reach out to all customers who may have been affected to ensure their absolute satisfaction," NewEgg said. "We have already sent out a number of replacement units and are doing everything in our power to resolve the matter promptly and with the least amount of inconvenience to our customers.

"We have always taken pride in providing an exceptional experience for each customer, and we apologize for any inconvenience to our valued customers," NewEgg added. "We take matters like this extremely seriously, and are working in close cooperation with Intel and the appropriate law enforcement authorities to thoroughly investigate this incident."