LG, the world’s third-largest device vendor, has cut its 2011 smartphone shipments target and is on track to post a fifth consecutive quarterly loss at its handset division, reports Reuters. The South Korean vendor forecast on Thursday its smartphone sales would reach 24 million units this year, down from its previous target of more than 30 million units, while its overall handset target was slashed by a quarter to 114 million units from 150 million units. “Our overall performance is gradually improving…but it’s difficult to give a precise prediction when our business will turn around due to a fast changing external market environment,” Park Jong-seok, head of LG’s handset division, told reporters. Analysts expect Q2 losses at LG’s handset unit to narrow to around KRW70-90 billion from a KRW120 billion won (US$112.5 million) loss a year ago when it reports quarterly results later this month.

LG’s Optimus smartphone range has largely failed to compete with high-profile rivals such as Apple’s iPhone and Samsung’s Galaxy S. According to Reuters, domestic rival Samsung is widely expected to sell at least 19 million smartphones in the second quarter and easily beat its 2011 smartphone target of 60 million units. “In mature markets, the LG brand is still considered a step down from Samsung, which makes their products less appealing,” said Carolina Milanesi, a Gartner analyst. LG separately announced today the launch of its Optimus 3D smartphone (pictured) in South Korea, initially offered by SK Telecom, the country’s largest operator. LG hopes to sell 1.7 million units this year.