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Since the release of the iPad, Apple have sold over 3.3million units, with no indication that demand will let up anytime soon. The 9.7-inch touch screen unit provides a user experience optimized for the web, messaging, multimedia, games and ebooks. So far, demand has far outweighed supply. The only question now is, ‘Can anyone beat the iPad’?

Microsoft CEO Steve Ballmer thinks so.

Speaking this week to industry analysts, Mr Ballmer said that Microsoft is working hard to make Windows 7 an innovative Operating System (OS) for tablets.

“We have got to make things happen. We’re in the process of doing that as we speak. We’re working with our hardware partners. We’re tuning Windows 7,”

The unprecedented success of the iPad has certainly spurred Microsoft into action. After abandoning their own plans to release the promising ‘Courier’ tablet, Microsoft now seem focused on delivering an OS that can compete in this growing market.

However, their development of a Windows 7 OS has hit some serious obstacles already. In June Asus announced the upcoming release of the ‘Eee Pad’. Operating on the Windows 7 OS, it has been billed as the only real contender to go against the iPad. The Eee Pad will reportedly feature an integrated webcam and support for Flash video technology. It will be available with a 10in or 12in display and retail for roughly £275, £154 cheaper than the entry level iPad.

However, just over a month after the announcement, Windows 7 was dumped in favour of the yet to be released Android 3.0 OS from Google.

No official word yet on the reasoning behind this move, but it will come as a blow for Microsoft and a big boost for Google, which is already competing and making ground in the smart phone market against Apple. If they can provide a stronger OS than Apple at a cheaper price, then Apple may be left behind in a market they have dominated - and find out how much they can really rely on brand loyalty.

With other manufacturers Acer, Asus, Lenovo, LG, Toshiba and Motorola all planning to release tablets powered by Android, and not Windows 7, in the near future, Apple may find themselves forced to release a new version of the iPad and its OS. To remain a competitive product, the iPad needs to allow for multitasking, incorporate a webcam for Skype chats and print - three of the key criticisms of the iPad.

Despite the potential applications of the Windows 7 OS, without backing from hardware manufacturers we may never see this exciting product come to fruition, much like the Courier.