Before prices were cut, shipments of Barnes & Noble Nook tablets were dropping. From 1 million tablets in the fourth quarter of 2012, 700,00 units were in transit in the first quarter of 2013. The recently ended second quarter might have been worse with just 500,000 to 600,000 Nooks shipped as competition from other manufacturers affected demand for the tablets.
But similar to the way that demand for the HP TouchPad soared when HP stopped producing the tablet and cut its price to $99.99 back in 2011, some are calling for a surge in demand for the Android flavored slabs starting this quarter. If the current price level doesn't help clear the shelves of inventory, expect another round of price cuts from the Book retailer.
Analysts don't expect the halt in Nook production to affect the contract manufacturers in Taiwan since production was limited compared to other tablets being assembled in the country. Pegatron was the manufacturer behind the Nook tablets.