The Note 10.1 is said to have a 1.4 GHz dual-core processor at its heart, along with having 64GB of in-built storage. The Note 10.1 also ships with the newest version of Android, Ice Cream Sandwich OS. The front camera on the Note also gets upgraded to 2-megapixels.
Samsung took the time to rework the functionality of the S-pen, making it similar to that of drawing tablets. What that means is that the pen is now pressure sensitive, allowing the thickness of the drawn lines to vary according to how much pressure the user puts on the pen. The built-in utilities that take advantage of the S-pen have also been revamped with better recognition algorithms, formula templates and the likes.
An interesting addition to the Galaxy Note 10.1 is the Photoshop Touch app that comes as part of the stock tablet package.
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