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Android faces competition from iPad 2, tablet’s business sector

by Kristen Nicole

iPad 2 vs Android

News of Apple’s (AAPL) production plans for its next iPad model comes at an interesting time in the tablet industry’s growth, stealing a bit of the thunder that Android has been reveling in lately. With a camera for videoconferencing, the upcoming iPad 2 will reportedly be thinner and lighter, giving Android tablets running Honeycomb 3.0 a lot to think about. No word yet on the exact date of the iPad 2’s availability, but the mere suggestion of its production is enough to make consumers think twice about their first (or next) tablet purchase.

Android in the business world?

Businesses are also comparing the early 2011 tablet lineup, with hopes of making employees more efficient and mobile. But Android may be losing out in this arena, just as its initial smartphones failed to immediately attract enterprise clients.

Dell (DELL), while already promoting its upcoming Android tablet for consumer use, is planning to release a Windows 7 tablet for the business sector, citing Microsoft’s (MSFT) operating system as a determining factor. This is yet another instance where Android’s OS falls short, as professionals are already familiar with Windows, likely making an easier transition to a tablet running Microsoft products.

High hopes for mobile ads

Despite these pitfalls, Android is still expected to generate a great deal of revenue for Google (GOOG), particularly in the mobile ad space. Android could amass $1.3 billion in mobile ads by 2012, according to Piper Jaffray (PJC) analyst Gene Munster. It’s certainly a good sign for Google, as ad revenue is still the beating heart of the company, with Android acting as the mobile extension of Google’s ability to monetize its products.