The original eight counts of better features were the OS, better hardware, better screen resolution, front and rear cameras, better browser, it is able to play Flash, no Apple big brother to decide what you should see or not and apps are better on it.
Honeycomb or the Android 3.0is meant for tablets and improved quite a from the earlier versions. As easy to use as the iPad OS it can be customized and is rich in features. Notifications are handled better and multitasking and switching between apps is easier. NVidia Tegra 2, 2 core processor gives you better graphic capabilities. That includes 3D games. iPad processor is a single core one.Xoom wins over iPad with a 10 inch, wide aspect, 1280x 800 pixels vs. 9.7 inch with 1024x 768 pixels.
Tow cameras lets video chat to be done easily while making photo/video taking quite easy.Chrome on the Xoom with tabbed browsing is better than the Safari on the iPad. Motorola has not barred Adobe flash, so you can get to see all the flash content and download them as you like. Xoom does not have Apple breathing down you neck and decide what is good for you! Google's built-in apps, including Gmail, Google Maps, and Google Calendar, is better than IPad comes with. Xoom's Tegra 2 chip, lets you use vector graphics and 3D rendering in Google Maps.
That was in early March. Then came the iPad2 announcement and the author Preston Gralla still finds the Xoom to be the better one. iPad2 moved to 2 core processor and 2 camera configuration. So that was a bit of catch up. He is still not happy with whatever tweaks have been done to iOS 4.3 but Honeycomb remains better still. Xoom advantages of the apps, no whims of Apple affecting you and ability to still enjoy flash remains advantages according to the author. I, too, think he is probably right. But, as I have said it still may get decided on entirely different reasons. These advantages will remain, however.
Motorola Xoom versus the iPad 2 --- the Xoom is a clear winner - Computerworld Blogs
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