Newegg decides they like to take advantage of our readers

Subject: Storage | September 3, 2009 - 02:03 AM |
Tagged:

I try not to get up in arms about pricing of particular components at different online retailers, but I really felt the need to bitch about this one.  Newegg, whom I usually recommend whole heartedly, simply decided to screw over the consumer this week on the nifty new Intel X25-M G2 SSDs that Allyn reviewed last month.



Intel's new G2 (generation 2) X25-M SSD

I just bought a pair of the Intel 160GB X25-M G2 SSDs last week for $449 each plus a bit of shipping to use in our new Intel Lynnfield test beds.  Well, as I was so pleased with them, I decided I might want to move all the test beds here to them and maybe get one for my own personal system upgrade to Lynnfield later in month.  (Is that breaking NDA on the processors because I'm in love with them?)  To my dismay, the prices have SKYROCKETED on Newegg's site. 
(Here's the live link I took these screenshots from...



Note: these listings are in order by price.  The ones ending in "C1" are the OEM drives, while the ones ending in "R5" are retail packaging.

The exact model I purchased just a few days ago was the SSDA2MH160G2C1 model - the price has gone from the $449 Intel-recommended MSRP to $899!  And between the time I found this issue on Newegg's site and when I took this screenshot, at least one person purchased a unit as it was in stock earlier in the evening.  The 80GB version of the Intel X25-M G2 SSD went from $239 to $499- that is a 110% price increase!

A new addition to the Newegg site is the retail-packaged versions of the X25-M G2s - where as the ones I ordered were bare-drive OEM models.  These will cost you an even MORE ridiculous price - $599 for the 80GB and $997 for the 160GB!  To put that in perspective (as we like to do, per the title) that is $7.48/GB for the 80GB model and $6.23/GB for the 160GB version compared to the $2.80 or so that these drives SHOULD be priced at.

A quick check of some other online resellers showed that Amazon had the retail versions of these drives selling for $339 and $499 for the 80GB and 160GB models respectively.  That puts Amazon at about HALF THE PRICE of Newegg. 

One thing is for sure, if pricing stays like this, it is making Indilinx-based drives like those from OCZ Technology a lot more attractive.  I bet the gang there loves nothing more than to see these prices so inflated. 

While I would like to believe that this was just a typing error on Newegg's part, we all know better.  I'm not just doing this for my own wallet, but because I have always sent readers and friends to Newegg both by word of mouth and links here throughout the site.  I feel like our word has been tainted, that your trust in us might be swayed, knowing that we linked you to a site that would rip you off like this.  Hopefully some old-fashioned peer pressure will get them to change their tune. 

UPDATE (9/1/09 @ 10:41am):  I've been getting a lot of feedback on this article, some positive, some negative, which is fine.  But I want to address a couple of things.  First, Newegg does not have an automated price adjustment system according to the people I know at the company.  (Even if they did, more than doubling the price shouldn't be an option there.)  Second, it's not a typo or error - won't convince me of that.   Third, Newegg is one of the ONLY places to have had these drives in stock in the last month.  Even the Amazon link above shows a 2-4 week wait for the 160GB model.  I know other places have had stock on them, but from what I know about the shipping patterns to retailers Newegg has been getting the strong majority of drives (as they are by far the largest PC component consumer reseller in the US).  Finally, the only valid point here is the issue of supply and demand: does Newegg have the right to charge whatever they want?  Sure.  Do I think it will and SHOULD negatively affect where people purchase their products in the future?  Absolutely. 

Again, my reason for posting this is not to simply complain about the prices, but the sudden and extremely dramatic price increase.  If these drives were suddenly $50 higher each overnight, I would be aggravated but would have been understanding.  That's an extra $50 in Newegg's pocket with each sale.  Now however, we are talking about an extra $500 in Newegg's pocket when selling that $449 drive - and it seems out of line to me.  If you disagree, and are comfortable with the price change, that's fine, you can ignore this posting.  If not, I encourage you to email Newegg and ask for a reason for the price change or to tell them you are contemplating not using them for other purchases because of tactics like this. 

UPDATE (9/1/09 @ 6:02pm):  Just got word that Newegg has pulled ALL of the listings for Intel's X25-M G2 SSDs.  Looks like outside pressure is being put on them it seems...

In other news, I did get this statement from Intel:

Intel has not raised distributor pricing but the demand for 34nm SSDs is outstripping supply, which Intel is addressing. We cannot speak to pricing strategy at specific etailers.

That pretty much puts this pricing "adjustment" all on Newegg.  Waiting for more information...

UPDATE (9/3/09 @ 12:55pm): To prove to you that the laws of supply and demand do not require you to get "F'd in the A", I just ordered a couple of the Intel X25-M G2 160GB SSDs from the fine folks over at TankGuys.com for $479.  That is a modest premium for an in-demand part.  If you are still on the look out for a 160GB model I am told they have at least a couple left.

No comments posted yet.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Lines and paragraphs break automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <blockquote><p><br>
  • Web page addresses and e-mail addresses turn into links automatically.

More information about formatting options

By submitting this form, you accept the Mollom privacy policy.