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Search giant Google (NASDAQ:GOOG) is expected to release an updated version of its Android operating system - Android 3.2 - to production partners at the end of July or early August.

The Android 3.2 is expected to optimize Qualcomm's Snapdragon chips apart from improving the compatibility of Android-based applications, Digitimes reported citing industry sources.

Meanwhile, the upcoming version also offers several upgrade functions including Movie Studio, Movies, Music and Widget.

A flurry of Android tablets is expected to hit the markets in the near-term. Asustek's Eee Pad MeMO 3D, Acer's 7-inch Iconia Tab A100 and Huawei's 7-inch MediaPad are expected to be released in the second half. Meanwhile, HTC may upgrade its Android 2.3 HTC Flyer to Android 3.2, the sources added.

In addition, Motorola is beginning to roll out Android Honeycomb 3.2 for its Xoom tablet, CNET reported.

Google's Android is one of the fastest growing mobile operating system. Android activations have increased to 550,000 per day and there are 135 million active Android devices, up from 100 million two months ago.

Google's Android app store offers 250,000 apps and has recently added movies and books. The company has announced it has now seen 6 billion apps installed on Android.

In addition, Google Chrome is the fastest growing web browser with 160 million worldwide users.

Meanwhile, the company's latest foray in to social networking -- Google+ -- is also turning out be an instant success with over 10 million users in just two weeks of its launch.