Images
Below are pictures I took using the Instagram app:
Below are pictuers I took using the Hipstamatic app:
User Experience
I tend to prefer the results Instagram provides - being able to browse the various results means the best filter is always selected.
With Hipstamatic the randomness often results in unexpected results.
The main difference in the actual shots/filters seems to be in the level of contrast, with it being richer in Instagram and more washed out and dreamy in Hipstamatic.
User Interface
Generally I much prefer the Instagram interface, not having to wait for the image to "develop" and the ability to try all the different filters out before selecting the best one. I also like the ability to edit the image in another app first before then applying the filters.
The randomness of hipstamatic does sometimes produce nice and unexpected results, but equally there are plenty of shots which could be much improved if there was a better viewfinder or if they could be applied retroactively.
Instagram has better interface as you are able to test out different filters and selecting the one that you see most fit.
Summary
Overall the ability to test out different filters makes Instagram the best choice due to the fact that you will always end up with the desired result. In addition, Instagram is free in app store so it is worth giving it a try.
You can read my original article comparing these items here

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