South-Korean Company LG Electronics Inc. announced Monday that it will not launch a tablet running Google’s “Froyo”, an Android 2.2 operating system. This will lead to a delay in release of their first ever tablet PC, which was already scheduled to go out of the market next quarter. LG is already falling behind due to lack of products.

“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, according to Reuters.

This could have been an opportunity for LG to pull itself together from their lagging in the smartphone market, as the launch of Optimus One, targeting 10 million units to be sold out, has not even gotten to a million mark. But this delay of the tablet release might cause them to lose OUT completely, in a market alreacy crowded  with Apple’s iPad, other Android devices, plus RIM’s Playbook tablet, revealed just last week.

LG, which also lost its CEO just last month, could still see some level of opportunity with Android’s platform.  LG’s issues with Froyo are not isolated in the larger tablet industry, with no Android tablets yet able to support the official Android app Market.  There’s still ample room for a manufacturer to make waves in the Android field.