LG Electronics is investing heavily in developing its smartphone business as it faces increasing global competition, the chief executive of the South Korean company said.

Since 1996, Microsoft has been writing operating systems for little computers to carry in your pocket. It was a lonely business until the company’s perennial rival, Apple, introduced the Web-browsing, music-playing iPhone. But now that smartphones are popular, Microsoft’s operating system, Windows Mobile, is foundering.

LG Electronics posted better-than-expected results thanks to strong sales of key handsets and TVs, but faces weakening earnings momentum.

Flat-panel maker LG Display reported a record quarterly operating profit on Thursday, above market forecasts, as strong demand and raw material shortages boosted prices for TV and computer screens.