No, its much more than normal heating. I agree that all electronics (Phones,Laptops,etc) heat up and any phone in the market will get hot/warm when used for a long time. But the case is rather bad for the nexus 4, it throttles(lowers its cpu clock and Gpu clock) significantly. The case is so bad that it heats upto 60 deg Cel under constant load(no other tested smartphone reached that high, read video description) and actually shuts off.
Here is the video:
A: Google Nexus 4 overheating and shutting down during full load - S4 Pro not so power efficient? - YouTube
Now one may argue that no one is gonna keep the mobile stressed so much that it will heat so much and shut down. So here is a normal gaming/benchmarking scenario in which GPU throttling causes skipped frames.
B: *www.youtube.com/watch?v=abf7nPiUUE8
C: Nexus 4 Thermal Throttling Test - YouTube
I agree that for the price the nexus 4 is still perfect value for money, but here we are paying much more than the actual Play Store cost and that too without warranty.
I don't mind the heating that much but it starts to affect performance in games and lowers the battery backup significantly which is an issue
I think you should Google "Nexus 4 throttling" or "Nexus 4 overheating". There are more than just a couple of articles, forums discussing it. And that too forums like XDA, on Nexus 4 page itself you will find atleast 10 threads. There are official complaints from thousands of users on Google's official bug report page for Nexus 4. And Anandtech, one of the most reputed tech sites has done in depth analysis of this issue. Also youtube videos show real world proof of that issue existing.
There are actually mods on the XDA page in which people have opened their N4 back panel and performed detailed analysis and tried applying thermal paste
and actual copper piece to spread the heat. See below:
Nexus 4; Investigating thermal throttling [HardMod] - xda-developers
I will post more links if needed.
Like I said
I still love this phone and would own it in a heartbeat if given at a reasonable price and with warranty (since many people are returning their overheating phones for exchange). I was not kidding when I said that I have read many articles and threads on Nexus 4, since this purchase meant a lot to me. Most reviews don't show this problem since only people who have owned and used the device for a few days start to notice this issue, even with simple web browsing. For hardcore gaming this phone is not the best, since within minutes it starts to throttle its GPU and it affects frame-rate (Video B). Also most users are in much cooler climate countries than India. Here it would be worse.
Only solutions are:
1) Tinker with the throttle limits(after rooting) by editing a config file and risk harming the phone. No warranty or return policy for us.
2) Root, install custom kernel and a few "Snapdragon" mods to undervolt the CPU and underclock the GPU. Even disable 2 cores! But that kinda beats the purpose of owning a high end S4 quad phone, doesnt it? I was not planning to mod my nexus 4 so much( I dont mind plain rooting though) since that was the point of owning a nexus device that I get to use it the pure way Google intended and that it should work flawlessly.
Guys I'm not trying to start a flame war here.. Just trying to summarize what I have read. Cheers