- 89 Posts
Short Supply or High Demand
Although the past few weeks have been frustrating as I have attempted to purchase what I and many others contend to be the newest and best smartphone technology available I am also amazed at just how much we as a culture are driven to new technology.
Both the smartphone and tablet industry are setting record numbers in terms of sales and the newest products are in short supply regardless of what new device you are looking for. Although I have not seen sales forecasts for the Nexus 4 released to the open market Google is projected to sell 9.6 million Nexus tablets alone in fiscal year 2013. Some analyst predict that number to be substantially higher with sales projections up to 14.3 million. Presently Google is selling roughly 1 million Nexus 7 tablets each month alone.
To put the Nexus 4 launch into perspective I think we need to look at the incredible demand that exists around the Nexus line of products, we are buying at record levels and the supply chain simply is being overwhelmed at a pace that even a Corporate giant like Google cannot keep up with. Most other manufactures are also seeing record sales figures and supply issues with new technology.
While the Nexus 4 launch may have experienced some hiccups along the way I remain extremely bullish on Google (GOOG) and am adding to my portfolio as I look forward to newer and better technology in the coming months albeit I will not be checking the market on a new Nexus 4 until the demand settles a bit.
- 11-28-2012, 09:14 AM #2
Re: Short Supply or High Demand
Though I generally agree with what you wrote, without a doubt, they shorted the supply. Now I do not know if that was on lgs end (because the Nexus is just a variant of the G) or if Google just didn't place a high enough initial order. I am guessing it was lg.
You said all the latest and greatest new tech is in short supply. That is correct either, the sgs3 is still available everywhere. Samsung with all their fault did that launch right and have continued to do it right.
Sent from my X-Band Modem... TY Genesis
- 11-28-2012, 09:37 AM #3
Re: Short Supply or High Demand
Short Supply or High Demand?
We won't know anything for sure unless Google releases numbers, but I really think they were caught short by the demand. Remember that the Nexus One sold directly from Google was pretty much a flop outside nerd quarters. That led to the Nexus S and Galaxy Nexus to be sold through carriers, but the way they (especially Verizon) fudged up the whole idea of a Nexus device with the GNex led Google to give the direct sales channel another try. This is an unlocked cell phone which the end user will have to purchase access to the airwaves themselves, so based on their previous experiment selling the Nexus One, it's not unreasonable to think a conservative approach was prudent.
While they've obviously been caught out by the demand, what if the N4 was as niche as the N1? Did Google want to risk having a warehouse stacked with unsold N4s? As frustrating and inconvenient as this has been - and admittedly I'm speaking as someone whose N4 is on the delivery truck as I type this - the tidal wave of demand will become an important data point because Google will have evidence that there IS a demand for these sorts of products at these prices and it could provide the leverage they'd need to start getting control of their phones on carriers like Apple has. People who have demanded that Google act like Apple and slap the carriers around forget that Google has had no leverage to any such thing. When your company has a product which has sold a quarter-BILLION units and has legions of people willing to line up for days to get, you have the whip hand. When your previous attempts at selling yourself have failed, you've got to beg. Perhaps the Nexus 4 will be the club Big G needs to get the carriers' attention.
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