This one is pretty puzzling to me. LG has come such a long way in the past 12-18 months. Starting with the LG Optimus G last year and the Nexus 4, LG has made a huge turn around. Of course, the Optimus G Pro, G2, and Nexus 5 were also included in that turn around. LG was able to make a phone with the power button and volume rocker on the back, a popular phone. Which took a lot of work, since most people don't like change. Not to mention their G Flex which is coming to the US soon which has a curved display and a self-healing back. However, LG doesn't seem to happy with their smartphone industry right now.
Those in the Korean media are stating that LG is looking to reduce its focus on smartphones. LG's vice Chairman Koo Bon-joon allegedly still believes that smartphones will be an important industry in the long run, but in the short run, he believes LG needs to play it safe by focusing on a business that it is doing very well in right now, which is TVs. LG is looking to reduce the headcount in their smartphone division, but they aren't sure if it'll happen all at once or gradually. Additionally, R&D payroll probably won't get touched, but smartphone support staff will probably see the loss of a number of employees.
"With the premium market slowing down and Chinese companies charging forward in the sluggish mid-to low-priced market, there is not much choice for LG Electronics. For starters, it may be better off to improve its financial status by increasing its TV sales, and then invest properly in the smartphone business."-Securities analyst
It's important that we note, that LG isn't leaving the smartphone business, it's quite the contrary. They are just not going to devote as many resources to their smartphone business as they are right now. Which is probably a good idea...for now. Especially since they are selling so very many TV's. I'd expect to see a lot less smartphones in the next year or two from LG, but hopefully they will still offer a low-end, mid ranger and high end device to keep everyone happy.