The problem is that LG built precisely the number of phones that Google requested. There's nothing wrong with that, except that Google based those numbers on past Nexus smartphone sales. The fact that the Nexus 4 has been sold out for most of its life shows just how tepid those earlier sales were.
Really, the Nexus 4 is very attractive, both hardware- and software-wise. It sports a quad-core processor, a high-definition screen, and the latest Jelly Bean software sans any UI layer such as TouchWiz or Sense. It's also priced at $299 for 8GB of storage and $349 for 16GB of storage.
If you think those prices are high, remember that they are unsubsidized and without a contract. The devices only real negatives are a lack of LTE support and a lack of a microSD card slot.
It's unclear how bad things have been in the States, but as it turns out, ten times as many Android fans purchased the Nexus 4 as anticipated in both Britain and Germany. Meanwhile, the device remains sold out in the U.S. as of this writing.
Fortunately, from mid-February, LG will ramp up production of the Nexus 4. The faster, the better, for Nexus 4 sales. The longer it takes, the less relevance the device will have.
For example, Samsung is expected to ship the Galaxy S IV later this year, with an eight-core Exynos 5 processor using the new ARM big.LITTLE system. The sheer number of Android OEMs and devices is both a boon and a bane for Android lovers.
It means that unlike iPhone fans, who can basically expect one device a year, Android fans can see their wallets hammered every time they turn around.
It gets expensive, Android fans.