- 01-17-2013, 08:34 AM
Thread Author #1
- 01-17-2013, 08:46 AM
Thread Author #2
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
More here:
LG Mobile France director talks Nexus 4 supplies, Optimus G Euro launch | Android Central
Volume to make up for low margin?Speaking with French outlet Challenges.fr, Robin says "the supply problems are not solely related to LG." Apparently Google presented LG with Play Store sales forecasts based on the performance of previous Nexus phones, but these turned out to be far exceeded by actual demand for the device. Despite these issues, she insists things are going "very well" between LG and Google.
The LG director also took the opportunity to dismiss rumors that Nexus 4 production was slowing down or halting entirely. On the contrary, Robin claims that LG is ramping up production, and that by mid-February there should be "no more pressure" on the market.
Robin denies LG is selling the Nexus 4 at a loss, but says there's an agreement in place with Google to sell it at a "very attractive price."
Example using hypothetical #:
selling 4 million at $25 profit = $100 million profit
selling 1.1 million at $80 profit = $88 million profit - 01-17-2013, 08:49 AM #3
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
haha - this was my original suspicion vs all the conspiracy theories tossed around. They simply could not understand the market dynamic at play here well enough. Never underestimate the power of pure money (unlocked + no contract + cheap) and the power of geekdom (pure android).
- 01-17-2013, 08:53 AM
Thread Author #4
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
The current rate of production could look something like this
October: 70,000 produced
November: 90,000
Dec: 210,000
January: 400,000- 500,000
February: 700,000 - 900,000 (very doable since they are at 20,000 per day mid-January)
On the contrary, Robin claims that LG is ramping up production, and that by mid-February there should be "no more pressure" on the market.
LG is producing just as many handsets as Google ordered, then, but it hasn’t been meeting initial demand. As we had suspected, the device seems to have become far more popular than Google was anticipating, and it wasn’t prepared to fill so many orders.
“The current shipments from LG to Google match what had been preordered on the Google Play site,” Robin said. “We still ship them regularly. But it’s “just-in-time”. That’s why the Nexus 4 is always shown as sold out and the potential buyers have the feeling they can’t buy it.”
The other issue here is how the Nexus 4 has been distributed. Google decided to send a certain number of handsets to certain countries, while others got a far greater number. The search giant obviously expected the device to sell faster in certain markets, but it didn’t quite get its predictions right.
“As an example, the initial predictions of Google were 10 times higher for the United Kingdom and for Germany,” Robin revealed. “So we ship a lot more to these countries than to France. There was a happy medium that was badly anticipated.”
Despite this, Robin insists that “everything is going smoothly” between Google and LG. - 01-17-2013, 12:13 PM #5
- 01-17-2013, 05:48 PM #6
- 01-17-2013, 06:05 PM #7
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
If true, it's funny when people blame LG when Google probably didn't order enough. How's that for faith in your product?
a.k.a. RyZR from HoFo
Motorola DROID Bionic (6.7.246.XT865.Verizon.en.US, Ice Cream Sandwich 4.0.4)
Google Nexus 7 (JDQ39, Jelly Bean 4.2.2)
What other devices have I had? Here's my phone timeline.
Support your favorite Android app and game developers. Pay for apps! And don't block ads! - 01-17-2013, 06:44 PM #8
- 01-17-2013, 10:17 PM #9
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
Is this not the reason why PREORDERS were invented. So that customers could PREORDER, so the Company would have a good number to give to the manufacturer to mass produce.
If google let us pre order the Nexus 4 weeks before they started selling it the play store, we would not have had this issue.Thanked by 2: - 01-18-2013, 03:28 PM #10
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
This is what I've been saying for months.
Google does not understand what a proper Supply Chain is, or how to forecast for a product. They don't even understand that arguably the best phone in the market (back in November, at least) selling for $350 unlocked will sell a lot. LG is just the OEM; the supplier. They make the amount Google tells them to make. If the forecast is off, it messes up things for at least a few months.
I love Google, but they really need to Forecast the demand of their products better.Thanked by: - 01-18-2013, 03:37 PM #11
- 01-18-2013, 06:38 PM #12
- 01-18-2013, 07:04 PM #13Kyocera Marbl >> Kyocera Slider Sonic >> Sony Ericsson W580i >> LG Envy Touch >> Samsung Epic 4G >> LG Nexus 4
- 01-18-2013, 07:30 PM #14
- 01-18-2013, 08:03 PM #15
LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
My $.02; I also agree this was a demand issue. Google should have forecast more units then it ordered. I'm sure there has to be a better way/system to forecast sales not based on previous sales, but to use previous sales only as a variable, not the entire function. I'm not a mathematician either LOL (criminal justice degree), but man Google nailed it upside down with the N4 orders :-)
my Galaxy S2 GT-I9100 - 01-18-2013, 08:35 PM #16
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
- 01-19-2013, 12:18 AM #17Kyocera Marbl >> Kyocera Slider Sonic >> Sony Ericsson W580i >> LG Envy Touch >> Samsung Epic 4G >> LG Nexus 4
- 01-19-2013, 09:10 AM #18
- 01-19-2013, 09:28 AM #19
- 01-19-2013, 09:38 AM #20Thanked by:
- 01-19-2013, 04:05 PM #21
- 01-19-2013, 11:05 PM #22
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
It's so places like T-Mobile can have ample stock. Damn those meddling carriers. lol.
Sent from my DROID BIONIC using Android Central Forumsa.k.a. RyZR from HoFo
Motorola DROID Bionic (6.7.246.XT865.Verizon.en.US, Ice Cream Sandwich 4.0.4)
Google Nexus 7 (JDQ39, Jelly Bean 4.2.2)
What other devices have I had? Here's my phone timeline.
Support your favorite Android app and game developers. Pay for apps! And don't block ads! - 01-19-2013, 11:30 PM #23
- 01-20-2013, 02:18 AM
Thread Author #24
- 01-20-2013, 02:25 AM #25
Re: LG Electronics exec: Google underestimate demand, didn't order enough of Nexus 4
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