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The Android tools include an emulator. This emulator behaves like a real Android device in most cases and allow you to test your application without having a real device. You can emulate one or several devices with different configurations. Each configuration is defined via an "Android Virtual Device" (AVD).
To define an AVD press the device manager button, press "New" and maintain the following.



Press "Create AVD".This will create the device and display it under the "Virtual devices". To test if your setup is correct, select your device and press "Start".
After (a long time) your device should be started.
