And Amazon, which also has a successful line of e-book readers, announced its first tablet with much fanfare: the Kindle Fire.
The iPad is still the tablet to beat, dominating sales with more than two-thirds of the market.
Consumer Reports tested the Kindle Fire and the Nook tablet, along with more than 20 others.
"The Kindle Fire and the nook tablet are much lower priced than the iPad, but they're also more limited in what they can do. And the screens are about three inches smaller," said Paul Reynolds of Consumer Reports.
Consumer Reports' tests show both tablets do have very good screen quality, and they make it easy to get to a web browser, email and other content.
The differences? The $250 Nook tablet offers access to the Barnes and Noble store. It also has 16 gigs of capacity and a memory card slot.
The $200 Kindle Fire only has 8 gigs of storage, but you can upload your content to the Amazon Cloud for streaming to the device, so storage is less of an issue. And a real plus -- the Kindle Fire gives you access to all your Amazon content.
"Up until now, lower-priced tablet computers have been pretty unimpressive in our tests. These are the first models to give the iPad some serious competition,' Reynolds said.
But the iPad is still the best option for those looking for the full tablet experience. It's pricey, starting at $500, but the big screen is great for movies and games. It also has a camera.
And the 32-gig iPad 2 with WiFi and 3G is Consumer Reports' top-rated tablet.
For more information:
Consumer Reports Tablet Buying Guide