HP has announced its plan to produce one more batch of HP TouchPad tablets, due to reach store shelves before October 31.  Industry sources say HP might produce 500,000 to 1 million more units.

HP recently decided to kill the HP TouchPad and clear out the remaining units in warehouses through an absurdly marked-down price sale.  That did the trick, and stocks were cleared very quickly.  The HP TouchPad suddenly earned a great demand–thanks to the drastic price cut.

Analyst Shaw Wu told AppleInsider that HP’s decision is both “surprising and confusing.”

Despite the high demand that the lowering of prices has created for the HP TouchPad, sources say that HP’s announcement to manufacture additional units is not really entirely because of the high demand, but rather, because of existing agreements between HP and its component suppliers.

“While the company is stating it is doing so to satisfy stronger than expected demand, our checks with supply chain sources indicate another reason may be to fulfill commitments to component suppliers and manufacturing partners,” said Shaw Wu.

Android enthusiasts and programmers have taken advantage of the now more-affordably priced HP TouchPad.  Developers are currently working on ways to put Android on the HP TouchPad, which currently runs HP’s own operating system, webOS.

The TouchDroid project is one such effort.  The developers of CyanogenMod have also made inroads into a CyanogenMod port for the TouchPad, but have reportedly experienced some slowdown because of unavailability of test units.

When the new batch of HP TouchPad units arrive, will you be getting one?  And, which OS will you want it to run on–webOS or Android?

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