• by Mark Walsh  @markfwal, September 9, 2009

Ahead of its expected announcement of the fall 2009 iPod lineup today, the annual Apple music event is already sending ripples through the mobile world. Palm Wednesday formally launched the long-rumored Pixi smartphone, essentially a smaller, thinner version of the Pre that includes the company's webOS operating system and will be available from Sprint in time for the holiday season.

In connection with the Pixi launch, Palm also said it's cutting the price of the Pre to from $199 to $150 with a two-year contract and after a $150 instant rebate and a $100 mail-in rebate. The step brings the Pre more in line with the iPhone, which starts at $99, and other smartphones that have seen price reductions lately, including the BlackBerry Storm from Verizon, which also goes for $99.

With its new phone and Pre price-cut, Palm obviously hopes to steal some thunder from the Apple event today, where the company is rumored to unveil everything from iPod touches with cameras to an iTunes store with Facebook and Twitter compatibility to the reported "Cocktail" initiative to get people to buy full albums again.

With the Pixi in particular, Palm aims to bring back some of the buzz that surrounded the Pre's launch in June and keep its turnaround momentum going. While the Pre got off to a strong start, analysts believe more could have been sold if the device had initially been sold more widely through consumers electronics chains like Best Buy rather than being limited to Sprint stores.

Presumably, the Pixi, geared toward younger users, will be widely available from the start. Like the Pre, it appears to be well-received so far by reviewers, with Engadget saying it overall "walked away impressed by the Pixi." But what really matters is what the kids will think come holiday time.