January 15, 2013 10:16am
Last week, some sites reported on a new rumour out of the LG camp. It was a thin rumour with little evidence to back it up, but it went like this: LG is not having trouble producing Nexus 4’s, but is rather ramping down production in order to replace it with a new Nexus phone, likely a Nexus 5, in time for Mobile World Congress.
There are some shaky rumours out there — heck, even we report on some from time to time — but this one was just ridiculous. The truth is out there, folks, and that story contained none of it. Instead, it looks like LG is producing Nexus 4’s as fast as it can make them, and there are other reasons why they’re not getting into users’ hands. And it’s pretty simple.
LG is transitioning the Nexus 4 to a carrier model, much like it did for the Nexus S and Galaxy Nexus after some time. Particularly, carriers in the UK, US and Europe are picking up the stock Android device to sell on store shelves. We’ve even heard through the grapevine that Canadian carriers will begin offering the Nexus 4 in good time. This would mean fewer phones available for Google to sell through its Play Store, and while it initially seemed that the company would attempt to sell its low-cost device semi-exclusively through the online portal, it’s more profitable for them to sell the phones at higher costs to carriers who then sell them for subsidies. Google is likely losing money — or barely scraping even — on every Nexus 4 sold through the Play Store, so it means to recoup its investment somehow.
For LG, this changes nothing. It is cranking out Nexus 4’s as quickly as it can make them; according to a company representative, there is nothing fishy going on. “There is no problem [with] supply,” he said, indicating the company’s Pyeongtaek factory is producing the device “without a hitch.” We should see more stock in the Play Store soon — that sales channel isn’t going anywhere, and will still be the preferred method for most people — but it will also expand into new areas.
So there you have it. The Nexus 4 will becoming available again soon. Yes, it’s frustrating that you can’t buy one today, and likely won’t be able to tomorrow. But it will come back, and even in this fast-paced mobile world, no company would replace its flagship two months after its release.
Via: Android Central