Palm today launched the second phone to be based on its new webOS operating system and reduced the price of its flagship device, the Pre. Palm described the new device – known as the ‘Pixie’ – as having a “strikingly thin design, a visible full keyboard and fashionable personalisation options.” It includes email and messaging support for Google, Facebook, Microsoft’s Exchange ActiveSync, Yahoo! and LinkedIn. Like the Pre, the Pixie will be available exclusively via Sprint in the US and uses the mobile operator’s EV-DO Rev A network for high-speed connectivity. The device is scheduled to launch before the end of the year, though pricing was not disclosed.

Meanwhile, Palm also announced today that the price of the Pre in the US has been reduced to US$149.99 on a two-year service agreement and after a US$150 instant rebate and US$100 mail-in rebate. Previously costing US$199, the new price point makes the Pre more competitive with Apple’s rival iPhone, which is priced from US$99 and offered exclusively via Sprint’s rival operator, AT&T. The Pre is currently only available in the US but plans to launch in Europe (via Telefonica O2) in Spain, the UK, Ireland and Germany before year-end.