Palm (PALM) Pixi’s Prices Slashed

Online retailers have slashed the prices of Palm, Inc.'s (NASDAQ: PALM) newest smart phone, the Pixi, by 75% to $24.99 after a few days in the market. The Pixi is the sister phone to the Pre which is a leading phone device. Amazon is selling the Palm Pre for $79 and while the new handsets by the company have been well reviewed, they have not been smash hits according to analysts.

It is true that handset prices are discounted over time, but the steep fall in the Pixi’s price is jarring as it released just last weekend. The company does not like the way the prices are falling even though it maintains that it does not have much of a say in prices offered by third-party retailers of its products. The company is facing a slew of competitors this holiday season like BlackBerry Tour (NASDAQ: RIMM) and HTC Hero, which makes its position rather tough.