Perhaps signal that sales are slowing, Amazon has slashed the price of the Palm Pre to $79.99 with a two-year service plan from Sprint and now include free activation of the phone in the box.

Amazon is also offering the Palm Pixi for just $24.99 (with free activation). In contrast, Sprint currently sells the Pre for $149.99 and the Pixi for $99.99.

Palm shipped an update to the Palm Pre

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