I mean, which device do you have? What is the processor?
I can see some Android devices being able to handle this better than others...
What frameRate are you reaching vs. what you are aiming for at 30fps ?
Also, try to test fetching the image without displaying it, and see if that changes your performance - the bottleneck may be the net connection rather than loading the image...
Alternatively, try to load an image from your data folder every frame in draw, and see if you get the same performance drop without the internet fetching at all...
Run your DDMS debugger ( under /AndroidSDK/tools) while launching and running the sketch too, and it can give you some more verbose console output...
I would try to place it on a new Activity (but Im just guessing that is how you would thread in Android, i've not tried yet)... but are you currently running everything in Eclipse, with Processing already?