LG again denies claims of Google Nexus 4 production problems

LG again denies claims of Google Nexus 4 production problemsThe LG-built Google Nexus 4 was the surprise hit of 2012, largely thanks to the insanely reasonable £239/£279 price tag. Indeed, it’s mostly been “SOLD OUT” of late.

Both LG and Google have hinted that the other is to blame for the short supply, and LG is again pleading innocence.

Back in early December, LG suggested it was on top of things, and explained that the Google Nexus 4 had simply been met with “huge demand”.

LG’s UK guy, Andy Coughlin, purred: “As with any sales process, LG supplies product quantities against partners'/customers' (ie retailers, operators etc) forecasts. Demand via the Play Store has been very high in this instance.”

However, a couple of weeks later, Google appeared to lay the blame on LG, saying: “Supplies from the manufacturer are scarce and erratic”. Oh dear.

Speaking to Chosun Biz, LG claims that things are still proceeding as planned, and denies any supply issue. An official yells: “Domestic Pyeongtaek plant in Nexus 4 has been produced without a hitch. There is no problem in supplying "

The latest Google Nexus 4 rumours suggest supply has in fact been halted entirely, as we'll meet a successor at Mobile World Congress next month. Hmm.

via: The Verge

Read more about: Google Nexus 4Android

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12 comments

CTPAHHIK  Jan. 15, 2013 at 14:42

I tend to side with last statement. I don't think there are any new Nexuses coming up in near future.

JanSt / MOD  Jan. 15, 2013 at 14:45

Nobody's blamed Apple or Elop for this, yet? Trolls all growed up now? :p

CTPAHHIK  Jan. 15, 2013 at 15:19

Sad part is Google placing blame on LG. This is entirely 100% Google fault. You don't go blaming Foxconn for iPhone shortages. Google was supposed to estimate demand and secure necessary supply or ditch LG all together.

JanSt / MOD  Jan. 15, 2013 at 15:59

Sad part is Google placing blame on LG. This is entirely 100% Google fault. You don't go blaming Foxconn for iPhone shortages. Google was supposed to estimate demand and secure necessary supply or ditch LG all together.

+1 In addition: Google's the world's biggest advertising company. Communication should be their strength. It was their nexus, their stores... and they utterly failed to clarify the situation and to communicate with THEIR customers.

During Antennagate Jobs said some pretty daft things, but he didn't tell folks to email Foxconn to get better reception.

morpheus  Jan. 15, 2013 at 16:36

Sad part is Google placing blame on LG. This is entirely 100% Google fault. You don't go blaming Foxconn for iPhone shortages. Google was supposed to estimate demand and secure necessary supply or ditch LG all together.

And what if LG say "yeah, yeah, we can keep up with demand for the product....." and then suddenly say "oh s**t, we can't keep up with demand...."

If that is the case (not saying it is... but if it was...) how would that be Google's fault?

matt101101 / MOD  Jan. 15, 2013 at 17:42

Sad part is Google placing blame on LG. This is entirely 100% Google fault. You don't go blaming Foxconn for iPhone shortages. Google was supposed to estimate demand and secure necessary supply or ditch LG all together.

And what if LG say "yeah, yeah, we can keep up with demand for the product....." and then suddenly say "oh s**t, we can't keep up with demand...."

If that is the case (not saying it is... but if it was...) how would that be Google's fault?

Then LG should have cancelled orders to other suppliers (who all seem to have plenty of stock, backing up LG's story) in order to able to supply Google with more units of Google's Nexus device.

Pondlife  Jan. 15, 2013 at 22:02

Not sure I'd cancel orders for companies who are probably paying more to meet orders for one who didn't order enough.

matt101101 / MOD  Jan. 15, 2013 at 22:36

Not sure I'd cancel orders for companies who are probably paying more to meet orders for one who didn't order enough.
I would, cost price is cost price and Google were always going to shift more units that anyone else as they were selling it at a considerably lower price. The loss/lack of profit was on Google, not LG.

Pondlife  Jan. 15, 2013 at 23:01

Think google are paying less, besides bet there are additional costs for cancelled orders.

matt101101 / MOD  Jan. 15, 2013 at 23:15

Think google are paying less, besides bet there are additional costs for cancelled orders.
I wonder what the additional costs for failing to deliver to Google are...I'd guess the biggest one is guaranteeing you'll never get to brand a device you've made with the word "Nexus", ever again.

Pondlife  Jan. 16, 2013 at 00:21

Possibly, but if they've delivered what was ordered..
And considering the hassle it's caused them.
And that they need to be able to keep selling their other devices to those other companies without waiting for gifts from google that could never arrive for them again regardless.

CTPAHHIK  Jan. 16, 2013 at 08:39

I would not say that LG would be losing money on Nexus 4, nor does Google. Surely it does not cost over £200 to manufacture this phone.
- There is no software development cost for LG, as it's being handled by Google.
- Google would still spend/expense same amount of money on development regardless if phone is manufactured by someone else, or not manufactured at all - it's cheaper to have a phone then to work with emulator (in terms of working hours).

LG's problem and revenue loss stems from low volumes. If you ship 1mil phones your development/production costs could be as much as £500/phone. However, if you ship 40 mil your costs might be under £150. I can see Nexus 4 selling 20 mil/year if it would be available.

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