My requirement is to get data from a webpage and update in the Android Database (A simple table) and from there I will be querying the database to send out notifications
Whether I should use Async task or Service for it?
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You should use AsyncTask definitely. Service here is a big overhead.
In general AsyncTask are used when you do small things(3-5 seconds) and this is ok to show a progress dialog. Services are for long processing background tasks.