Google v. Apple: The Tablet Wars (GOOG, AAPL)

The battle for tablet computer market share is heating up just in time for holiday shopping, as devices running Google's GOOG Android software battle Apple's AAPL iPad. While the iPad has been well received, selling 3 million units in the first 80 days, adoption of Android is growing quickly. Dell DELL, Acer, LG, and Motorola MOT have all announced tablets that will run Android software. According to a Bloomberg report, "Samsung Electronics Co. will show the newest Android-based tablet for the U.S. market at an event in New York today, with the country's three largest mobile carriers agreeing to sell the Galaxy Tab, three people familiar with the deal said last week." While Google doesn't charge for the software, Jim Friedland, an analyst at Cowen & Co., pointed out to Bloomberg that advertising sales and search engine exposure are huge benefits. "By having an open Android system out there, it's actually accelerating the adoption. Tablets will increase the amount of time that people stay on some sort of computing device, which expands the traffic and people that Google can monetize." The Bloomberg report notes that "Android may take three or four years to outsell the iPad as it evolves into a system that can take advantage of the larger screen and video capabilities of tablets, Friedland said. That's similar to the amount of time it took for Android to develop and become popular after the iPhone was released in 2007, he said." It remains to be seen whether the tablet market will develop like the smartphone market has. Still, it's likely that Apple's iPad will remain a popular product for some consumers, while Android devices will spread quickly because of the free and open nature of the software. Shares of Google and Apple are both higher this afternoon, to $480.87 and $272.52, respectively. Get real-time news and stock alerts by following Benzinga on Twitter!