Palm Pre 100 at Best Buy

(Updated with Best Buy response) Best Buy this weekend quietly cut the price of the Palm Pre to $100 when paired with a two-year contract. The discount slashes the multi-touch smartphone's cost in half and comes less than two months after the phone was released. No explanation has been given for the move, including whether or not the new price is permanent or a temporary sale.

For now, the $100 price appears a belated reaction to the $99 iPhone 3G, which is unofficially credited with fueling Apple's record spring quarter. The Pre has some advantages over the older iPhone, such as a 3-megapixel camera and a faster processor, but has the same 8GB of storage and has had little success competing at the same price as the 16GB iPhone 3GS. Some, though not all, analysts believe demand has cooled down for the Pre in part because its up-front price has limited its appeal to converts from other carriers or smartphone platforms.

Sprint and Radio Shack continue to sell the Pre at its regular $200 price.

Update: A Best Buy spokesperson says the price was an "error" and is being changed, although Electronista has received reports from those who bought the phone at its lower price or matched prices for a recent purchase. [via PreCentral]

By Electronista Staff