Ahead of the Bell: US sales of Galaxy Note 10.1

Associated Press
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An artist uses the Samsung Galaxy Note to draw a Batman figure at a news conference, Wednesday, Aug. 15, 2012 in New York. Available in the U.S. starting Thursday, the $499 tablet comes with a pen, or more precisely, a stylus. The Galaxy Note shows that the pressure is building on the iPad, and Apple will have to work if it wants to maintain its lead. (AP Photo/Mark Lennihan)

NEW YORK (AP) — Samsung takes another shot at denting the iPad's dominance of the compute tablet market Thursday with the launch of its Galaxy Note 10.1.

It is the first Android tablet from Samsung Electronics Co. equipped with a digital pen and it can run two applications side-by-side on a screen divided in half. The split screen can be useful when taking notes while watching a video or surfing the Internet.

While the tablet has a faster processor than the iPad at the same price tag, its screen resolution is lower.

The price starts at $499 for the basic model with 16 gigabytes of storage and $549 for the 32-gigabyte model, expandable with an external memory card.

Analysts believe Note, because of its pen and dual-application ability, will be attractive to business and education customers, a strategy that could be more effective than going all out against the iPad, which already dominates nearly 70 percent of the worldwide tablet market.