Update: This story is breaking incredibly fast – we’ve already got more details, including the name and hardware specs.
The Pixie will use the same WebOS operating system and software as the Palm Pre, but in a smaller candy-bar form factor and a target $99 price point, say our sources. It will be released only a few months after the Pre in June, so this isn’t an upgrade device. It’s targeted at the lower end of the market.
Yesterday we didn’t know if the device would have a fixed physical keyboard. Today we’ve confirmed that it does. Physically the device will resemble the existing Palm Centro line of phones, but the hardware and software is a clean wipe. The Pixie is the Pre’s little brother.
We have conflicting sources talking about launch plans. One source says it’s full steam ahead. Another says Palm is waiting to see how the Pre does before announcing the Pixie.
This morning Boy Genius Report posted a blurry picture (which we use above) of a new Palm device that fits all the facts as we’ve heard independently. Until we see something we trust more, we’re going with this.