Amazon slashes price of Palm Pre to $79.99, Pixi to $24.99

Amazon has slashed the price of the Palm Pre to $79.99 with a two-year contract from Sprint.

The retailer is also offering free activation of the phone.

Leaving no stone unturned, the retailer also slashed the price of the brand-new Pixi handset to just $24.99, also with free activation.

(Sprint sells the Pre for $149.99 and the Pixi for $99.99.)

But is it enough to save Palm?

The Pre was once a top-flight premium phone, but its price point is exposing how quickly Palm's devices are sliding in the marketplace. if a fair price is what the market will bear, then the market isn't very enthused about Palm's devices.

Will these prices be enough to move more Pre and Pixi units? Or does Palm need more carriers and more phones to compete?