LG Elec Says Android 2.2-Based Tablet Plan Dropped

LG Electronics Inc said on Monday that it had scrapped a plan to launch a tablet computer based on Google Inc's Android 2.2 operation system known as "Froyo", a decision that may delay the rollout of its first tablet PC slated for next quarter. The decision could mark another setback for the South Korean company, which is seeking to bolster its loss-making handset division with attractive new devices, as its tablet may come too late to a suddenly congested market led by Apple Inc's successful iPad. "We plan to introduce a tablet that runs on the most reliable Android version ... We are in talks with Google to decide on the most suitable version for our tablet and that is not Froyo 2.2," said an LG official.

The official declined to be named, saying LG had yet to decide on the timing for its tablet launch. BlackBerry maker Research In Motion Ltd unveiled its PlayBook tablet last week in the fast-growing market that is becoming more crowded with the likes of Samsung Electronics Co Ltd and Dell Inc. LG, the world's No.3 mobile phone maker but a laggard in the booming smartphone market, introduced the Optimus One smartphone in Korea this week before launching global sales through about 120 carriers with a sales target of 10 million units. Its smartphones have yet to reach the 1 million unit sales mark and

LG is betting on strong demand for Android-based smartphones to help put it firmly back on the recovery path. The company ousted its chief executive last month, replacing him with a founding family member, and named new heads for its mobile phone and TV division last week in a sweeping reshuffle to shore up core operation.