Possible reason for Nexus 4 shortage

I think by now, its pretty clear Google had very few phones on the first pre-order and don't have enough stock control over the nexus 4 to give anything more specific than 'a few weeks'. Now the question is, why are they flailing so badly with the release?

It is also pretty clear that they are selling the phone for very near cost, and I'm sure LG are not happy about dedicating production time to something that they will make nothing on. I spoke to carphone warehouse's business contracts team about the Nexus 4 and they said that to offer me the phone, they would be buying it wholesale at £350 (as opposed to the £239 you can get from the play store.)

So perhaps, LG are holding back stock from Google in order to try and sell them through the carriers and make more off the phones overall. This might also explain the lack of pre-orders, because Google doesn't want to take orders on a phone it suspects it may not ever be able to cover.

Anybody got any other thoughts, apart from sheer incompetence (something that has clearly also been on display)?