Palm had just launched the Palm Pre mobile phone which was mostly targeted against the Apple’s new iPhone and the sliding QWERTY keypad and the multimedia interface were good enough to compete along with the price tag which is same as the Apple’s new iPhone 3GS.

But now Palm is working on another phone, Palm Pixie which is said to be running on the same OS which Palm used in the Pre – WebOS. And it certainly is not going to have everything that one saw in the Pre, and the price is expected to be $99. Why? May be the iPhone 3G is priced the same after the release of iPhone 3GS.

This product, if released earlier than Christmas would be an easy success because of Palm’s on-going popularity as they could sell 50,000 devices in the first week of launch. And along with that, Palm would be joining hands with Verizon after Sprint(who were the one for Palm Pre launch).

The Palm Pixie would be a touchscreen phone, so not caring about Palm’s intentions, this is another hit against iPhone 3G?