Palm has unveiled the Palm Pixi - the latest handset to run its WebOS software.

Speculation has been swirling for a few months now that Palm was readying a smaller, less expensive device than the Pre - the first handset to run WebOS.

The Pixi's display is smaller than the Pre's, measuring 2.6in and the camera is only 2Mp, as opposed to the Pre's 3Mp shooter. The handset also lacks GPS and Wi-Fi.

The lack of these two features indicates that the Pixi is aimed at a tweener set who probably won't use these features as much as older, more business-minded users.

The Palm Pixi features a rubberised black cover, but Palm has also made available a selection of limited-edition back covers in a range of eye-catching designs, such as Hummingbird or a Skull.

Although no UK availability or pricing details were made available, Palm did say the Pixi would be available in the US in time for Christmas on the Sprint Network, for $150 (£91) with a two-year contract.

Both of which were a surprise to some that had speculated that the next phone would be $100 (£60) or less and be a GSM-connected device.

According to a hands-on report from Gizmodo, the Pixi is smaller and more pocketable than the Pre-which we already considered fairly pocket-friendly. The keyboard is slightly smaller, but in Gizmodo's opinion, it is easier to use than the Pre's.

Mobile phone buying advice

See all mobile phone reviews

See also: Palm Pre UK release set for October