LG may already be testing Nexus 5 prototype after all. Sold 3 million Nexus 4s to date

Despite some info to the contrary, LG may be working on the Nexus 5 after all.
According to popular Korean site Daum.net, which does get quite a few Korean gadgets right, LG’s Mobile Communications division has already produced a prototype Nexus 5 device. The next generation Nexus has been in testing inside LG for the past month, under very strict security conditions, and has already been shown to Google’s CEO Larry Page.

As for the LG’s VP Won Kim’s interview with All About Phones, earlier this week, something might have been lost in translation. If you check Mr. Kim’s quotes carefully, he never explicitly stated that LG won’t make Nexus 5. He only acknowledged that Nexus 4 gave a huge marketing boost to LG, and said that after success LG had with its own products lately, they do not need such marketing support anymore.
However, gaining Android creds among fans may not be the only reason to make Nexus 5 device. If Google is doing the new Nexus phone this year, the next generation Google flagship will most certainly run Android 5.0 Key Lime Pie. Having early access to that version of Android, while giving your engineers opportunity to gain experience developing hardware running Android 5.0, would be worth way more in potential time-to-market lead times for LG Optimus devices.

Daum also mentioned that according to the sources inside LG, 3 million Nexus 4s have been sold to date.
At this point I am not sure whether LG is working on the next Nexus device, or not. Or even whether there will be Nexus 5 at all, with Google’s Motorola so busy with its Moto X.
But Android 5 Key Lime Pie is definitely coming, most likely this fall, and there haven’t yet been next generation Android release without a flagship Nexus device to showcase it. For political reasons, Google simply can not launch Moto X as a flagship Key Lime Pie smartphone, and I haven’t heard even a hint that anyone else is making one.
But time for late 2013 Android 5 launch is running short, and if there is to be Nexus 5 smartphone, it is most certainly is in the heavy development by now. And LG today looks like the best candidate to do that.