Does Google intentionally understock during new phone launches?

[Bankz111]

Lol, its intentional. It has being googles tactics since forever. Hence why despite all the "sold out" tags, the Nexus phones have never sold anything remotely meaningful. Its a marketing tactic for the average joe to deceive them into thinking the phones are in high demand.

I'm pretty sure google probably had like 100,000 in stock tbh

 

[PhiPsi32]

I don't know about stock ready to ship, but I guestimate that Google ordered 400-500k units for launch.

 

[Markxmlx]

One wonders if they just like to say that it sold out so that it makes it look like many people are ordering the phone.

 

[PhiPsi32]

My guess is Google has never been a hardware blockbuster. They're being conservative rather than stocking the warehouses with product that will sit around.

 

[tdizzel]

My guess is that Google has limited amounts they can sell and its tied directly to how many Verizon sells. Verizon paid for exclusivity, they're going to want people buying from them and using it on their network, they don't want everyone buying from Google and using it wherever they want. I'd guess that as Verizon sells more, more will be available from Google and once the exclusivity period ends there will be no limit on how many can be available from Google.

 

[IncredibleJedi]

Business 101: Better to have a product sold, out of stock, and in demand than have it ready to go should someone want it.

It means you've made money, and didn't waste money on inventory sitting around collecting dust.

Business aside, I think this might be Google's biggest launch, ever. They likely didn't anticipate there being this much demand, this early on. Or maybe they did, since Verizon still has stock. Either way, this bodes well for Google and their future.

Hope you folks end up with the device you prefer sooner than later.

 

[Almeuit]

To be honest I have seen iPhones, Notes, etc. etc. go out of stock as well. I doubt Google is doing anything different than the other guys.

 

[Wiley_11]

I don't know if it's intentional but it seems typical.

 

[sacerdos]

Maybe they want a real-time test, to make sure there is no hardware failure, like Samsung. If there were something wrong, they would have it fixed in the second round of phones...idk.

 

[Richard Servello]

Business 101: Better to have a product sold, out of stock, and in demand than have it ready to go should someone want it.

It means you've made money, and didn't waste money on inventory sitting around collecting dust.

Business aside, I think this might be Google's biggest launch, ever. They likely didn't anticipate there being this much demand, this early on. Or maybe they did, since Verizon still has stock. Either way, this bodes well for Google and their future.

Hope you folks end up with the device you prefer sooner than later.

Exactly. Plus preorders are a method with which to gauge desire. There will be enough produced to meet demand...but they aren't going to produce millions of units...just in case.

 

[PhiPsi32]

Or maybe millions of units are sitting on a cargo ship anchored of the coast. They offload a little bit at a time. Google may be keeping the supply artificially low to encourage chatter and impulse buys when inventory comes available.

Probably not . . . . but . . .

 

[Wiley_11]

Or maybe millions of units are sitting on a cargo ship anchored of the coast. They offload a little bit at a time.

They use planes to ship them.

 

[PhiPsi32]

They want you to think that . . .

 

[juliesdroidsync]

I'm guessing the shortages from Google, (and every other phone manufacturer that has ever put out a new phone...) are based on the fact they really don't know how many they're going to sell, and how quickly.

There is always a "triangle" to keep balance between timeliness to market (as we are all so ridiculously impatient that waiting even a very short time will drive most of us elsewhere), Quality Control (yeah, Sammy... sweetie... jumped the gun there a bit - twice! <sigh>), and production schedules (don't make 10 million if you're only going to sell 8... especially if the first ones you make have issues...)

The market for these phones is tough, we are a finicky, and even somewhat brand-disloyal bunch of consumers.

As much as I love Sammy, for example, if the Pixel XL goes waterproof, gives me the Edge screen, and adds something like the S-pen, I might stay here in Google-Land.

 

[PhiPsi32]

I was anxious for the 5X/6P release because I was coming off of a series of disappointing phones. Now that I have a 6P (which has served me well) I don't mind the pre-order hokie pokie so much.