Palm is set to launch a budget price version of the Palm Pre, with the aim of appealing to younger mobile phone buyers.
Dubbed the Palm Pixi, the phone is due to arrive in the US before Christmas and is expected to land in the UK soon after.
The phone differs from the Pre in the respect that while Palm’s flagship phone’s QWERTY keyboard slides out, the Pixi’s keyboard is integrated into the body of the phone.
However, both mobiles use Palm’ operating system and can be recharged wirelessly.
Jon Rubenstein, chairman and chief executive officer at the company, 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."
Network carriers in the UK have yet to be confirmed, but it is thought that O2 could be a strong contender, having already secured exclusive rights to sell the Pre when it arrives on these shores in October.