Palm Pixie Is Real, But May Never Come To Market

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Lots of excitement today over a second Palm WebOS device now that the Pre has launched. The only problem is that none of this is news. We broke the story about the device, code named Pixie, on April 29. A day later we had the Pixie name and additional details.

As far as I can tell there are no additional details coming out now. So I’ll supply additional information that we’ve gathered. Our sources in Asia tell us that Palm continues to push development of the device but is far from making a launch decision. “Palm has decided to put the Pixie on hold until they have better visibility into how its current models are selling in the market.”

Our guess is that low Pre sales rates make it less likely for the Pixie to hit the market this year. Palm’s WebOS is the best mobile operating system in existence, in our humble opinion. But the hardware is, at best, a B.

We’ve also heard from multiple sources that Palm initially ordered 500,000 units of the Palm Pre from Foxconn for delivery by the end of May. Instead, they got 150,000 units in June. The reason? “the device’s complicated mechanical design caused low yield rates.” The result was a delayed launch and poor supply.

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