There are no supply issues hampering the production of Nexus 4, a South Korean official of LG told a Chinese publication this week, dismissing reports that the Google smartphone stock outs were mostly caused by a supply chain that is erratic and scarce.

Citing information provided by an LG representative, Chosun Ilbo reported that the popular but elusive Nexus 4 remains in active production at a local LG manufacturing plant in South Korea.

Rumours that LG has encountered serious problems in delivering the handset to Google, which includes production stoppage, were called as unfounded by the company spokesman, the Chinese paper said on its report.

This is the first time that LG spoke out concerning the Nexus 4 availability hiccup following Google's admission that the handset's global distribution was in fact hindered by LG's apparent inability to meet consumer demands.

LG's statement seemed to imply that there was no problem at all, insisting even that the smartphone is being manufactured without any signs of any problem.

The company, however, did not address the global stock outs that characterised the Nexus 4 roll out since it was launched. It failed to directly challenge the hint let out by a Google UK official, who admitted last month that "supplies from the manufacturer are scarce and erratic."

Despite its claim that Nexus 4 production is proceeding as planned, the handset remains listed as 'Sold Out' at Google Play store, according to Business Insider. There were no indications too from blog sites monitoring the matter that the Nexus 4 availability status had changed this week.

But one bright development came from Virgin Mobile UK, which has announced that it will pick up the Google smartphone. The telco will offer the Nexus 4 in two separate packages for a two-year contract.

Nexus 4 on Virgin Mobile UK will cost £99, according to Android Central, a one-off payment that comes with 2500 minutes of voice calls plus unlimited sending of SMS and data usage. It will cost £34 every billing cycle.

The other package starts at £31 with limited voice, text and data provisions. But the plan dangles the Nexus 4 for free.

Reports like this, according to blog reports, suggest that Nexus 4 production has prioritised bulk orders from telcos, leaving Google Play store buyers in the cold for the moment.

For UK buyers, it appears that the best prospect of getting the Nexus 4 is through telecom companies' retail stores, Android Central said.

To date, the Google gadget has been picked up by O2 UK, Three and the latest, Virgin Mobile UK.