Yes, it is true. A recent news feature by the Wall Street Journal on Android boss Andy Rubin revealed that South Korean electronics giant LG was supposed to make the first ever Android smartphone, but the company backed out on the deal. Forcing Rubin to go to HTC, which was a little known company at that time and it primarily made phones running on Windows Mobile platform.
HTC went on to launch HTC Dream aka T-Mobile G1 – the first ever Android smartphone to reach the market. We don’t know how things would have turned out had LG stuck to make the first Android device, but HTC proved to be a great Android partner.
LG later along with Samsung, Motorola and other manufacturers signed on to Google’s “Open Handset Alliance” in November 2007.