Electronics firm LG is looking to boost investment in product development by 12 per cent in 2011 to a hefty $18.2bn, as it tries to increase its rather paltry share of the smartphone market.
According to Reuters, a lion's share of the money will be directed towards LG's loss-making handset business.
Although the firm has generated a lot of excitement over its Optimus handsets and the announcement of what it claims will be the world's first phone to feature a dual core processor, it recently announced a fall in profits.
The Optimus One sold over one million units in its first month following its October launch, according to the firm, with sales since then passing the two million mark.
Announcing those sales Jong-seok Park, the president and chief executive of LG, said: “Optimus One seems to be what many customers were waiting for, proving that smartphones aren’t just for early adopters anymore.”
LG is also expected to use its increased investment to enter the increasingly crowded tablet market.
"The focus for 2011 will be bolstering our core businesses of smartphones, tablets, TVs and large-sized displays and also supporting new growth engines such as solar cell, new types of displays and small-sized display panels for smartphones and tablets," the group told Reuters.
V3.co.uk has asked LG for confirmation of the investment plans and is awaiting a response.
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