>From discussions with the Google Engineers, the emulator emulates the *entire 
*device on the lowest levels, not just the DalvikVM. It emulates the ARM 
processor and the code that runs on it and a bunch of the in and output 
devices (keyboard, touchscreen in some form, screen, GPS, etc). You can run 
NDK code (c/c++) on your emulator. 

They told us at Google IO (and other conferences) that the biggest 
performance bottleneck is the rendering of (large) screens. 

They are working hard in having the screen rendered on the PC's hardware 
(GPU) instead of doing it all in software (rendering the screen pixel by 
pixel). Some early demo was shown at Google IO and it looks very promising.

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