Indian googler

Google Inc has fixed some shortcomings in its tablet computer strategy, as the Internet search giant steps up efforts to break into a nascent market dominated by Apple.

Google has showcased the first version of its Android software designed to run on tablets with larger screens and greater computing horsepower, allowing for a sleeker and theoretically faster interface with built-in video conferencing.

The company also introduced a new way for developers to make money by building applications that run on Android.

The changes ratchet up the competition in the fast-growing tablet PC market, for which Hewlett-Packard and Microsoft are also developing rival software.

Analysts said "Honeycomb", while addressing a couple perceived flaws in the operating system when used for tablets as opposed to smartphones, was unlikely to immediately shift the balance of power.

"It closed the gap quite a bit," said BGC analyst Colin Gillis. But, he said "there was nothing there that was going to make me wait in line overnight," referring to the lines of customers who waited outside retail stores when Apple introduced the iPad in April.

Google said at an event at its Mountain View, California headquarters that Android developers would now be able to sell consumers goods from directly within their apps, a key capability Apple introduced more than one year ago.