Apple started letting third-party apps that play multi-format video files not too long ago, and one of those, AVPlayerHD, got an update this week that makes it pretty near perfect. It uses the power of the iPad 2's dual-core A5 to master non-native HD video.

Source: http://gigaom.com/apple/avplayerhd-unlocks-the-power-of-apples-dual-core-a5-for-hd-video/
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