The Sunnyvale, Calif.-based company said it will start selling the Pixi through Sprint, the exclusive carrier of the Pre, during the holiday season.
"The combination of announcing a new device and changing the price on the Pre show we're aggressively pursuing new customers to get them accessing the WebOS experience," said Katie Mitic, Palm's senior vice president of product marketing.
The Pixi is longer, slimmer and lighter than the Pre and instead of a center key, comes with a touch-sensitive bar located between the screen and keyboard.
It also features a touch screen, QWERTY keyboard, 2.0-megapixel camera, music player, dual speakers and 8GB of built-in memory -- but not Wi-Fi.
Palm said the Pixi will launch in the holiday season and that the price would be revealed later.