Demand For Google's Nexus 4 Phone Is 10X What Google Expected

CNET's report is based on comments from LG's comments to a French publication. "LG says it simply built as many phones as Google asked for, a number based on the sales of previous Nexus phones, such as the Nexus S," says CNET.

The Nexus 4 is a relatively inexpensive, but high quality phone. LG is the manufacturer, but Google has its branding on the phone and is selling the phone. LG plans to ramp production and should start meeting demand in mid-February.

It's important to keep in mind that Google may not have made very many phones. A previous estimate for the Nexus 4 phone said it only made 400,000 last quarter. If that's how many Google made, and if it really is 10X that, then Google could sell over 4 million units. And if that's true, then there's a chance Google's Nexus 4 sales could approach all of Motorola's smartphone sales this quarter (depending on what happens).

That's a lot of ifs, but it highlights the pluses and minuses of Google's tangled approach to the smartphone market. It's basically competing with itself.

Sounds bad, but really, it's all pretty good for Google. Demand in its phones is growing and that's the most important thing.