Palm has unveiled a new WebOS smartphone Pixi, which weighs around 99.5 grams and comes with 2.63-inch multi-touch screen with TFT display and full QWERTY keyboard. The Palm Pixi phone, which is expected to cheaper than the Pre, will be available exclusively from Sprint in time for the holidays.

The new Palm Pixi will use Sprint’s EVDO Rev. A 3G network to access the internet. The Pixi comes with a 2-megapixel fixed-focus camera with LED flash, Bluetooth 2.0, mobile e-mail and instant messaging support, integrated GPS, an accelerometer, 8GB of internal user storage, MicroUSB connector with USB 2.0 Hi-Speed and USB mass storage mode.

Jon Rubinstein, chairman and chief executive officer of Palm, said: With Palm webOS, we’re creating a new, more intuitive smartphone experience defined by unmatched simplicity and usefulness. Palm Pixi brings this unique experience to a broader range of people who want enhanced messaging and social networking in a design that lets them express their personal style.

In addition to linking the information from Google, Facebook and Exchange ActiveSync, Palm Pixi adds Yahoo! and LinkedIn integration to Palm Synergy and assembles it all in a single view. Palm’s media sync allows users to customise their phones with music, photos and videos from iTunes.

The company said that users can also download applications from the Palm Beta App Catalog, including the entertainment and social networking applications such as local concerts by iLike, and Yelp.

Dan Hesse, chief executive officer of Sprint, said: We are pleased to be the first carrier to bring this device to market and offer both devices in the growing Palm webOS family. Sprint’s Everything Data plans, which provide unrestricted access to the internet, mobile content and applications, and our Ready Now retail experience make for a perfect combination with these new Palm products.

Plam also said that it is reducing the price of its Pre from Sprint to $149.99 with a two-year service agreement and after a $150 instant rebate and $100 mail-in rebate.