When your smartphone drops from $299 ($199 with contract) to $79 over a summer, you have to wonder what’s going on. Two rumors are circulating this AM, one that Palm is laying off folks, perhaps in the Windows Mobile team.

UPDATE from Palm: “We are not laying people off. As we continue our transformation we are better aligning our staff with our business objectives.”

The estimated sales for the Pre topped out at 375,000 somewhere in the 810,000 range (Palm reports it sold 810K units last quarter and states at least half of those where Pres) at the end of August and they went from $299 ($199 with contract) to about $79 in about eleven weeks. While this might be normal for a feature phone – the subsidy kicks in once they’re sure that the early adopters who simply must have the LG Chocolate have had their fix – this isn’t good for a smartphone that was supposed to be the lead invasion force for a new WebOS smartphone renaissance.

UPDATED with word from Palm.

How many hours ago did it “break” that the Palm Pre wasn’t going to be available on Verizon Wireless? Yeah, well, now word on the street is that, forget everything you read last night, because there’s no way in hell the Palm Pre won’t be available for Verizon Wireless. Or, to remove the double-negative: yes, the Palm Pre will, indeed, be available on Verizon Wireless, most likely this winter. Calm yourselves.

In a rather surprising move considering Verizon’s lack of compelling handsets, the nation’s biggest wireless carrier has decided it’s going to pass on the Palm Pre, if reports are to be believed. This is a serious blow to Palm’s aspirations, and their stock took a 5% hit as if to rubber-stamp it. Although the team here is divided over Palm’s new efforts (and advertising strategy), I think we were all secretly rooting for Palm just a bit. After all, WebOS is impressive and the Pre and Pixi are solid little devices — but Verizon doesn’t think so, or at least not anymore.

Nobody can deny that sales have been underwhelming — half a million is about where I’d place them, which is no way to launch a giant-killer. That’s Verizon’s first complaint, and you can’t really blame them. Okay, strike one.

You get the feeling that Palm had something to hide today. On the surface that makes no sense, considering it officially announced the Pixi, the company’s second webOS-based phone, this morning. (The company’s first webOS phone, the Pre, launched to much fanfare last May, owing to an almost Bill Goldberg winning streak-like level of hype.) But as you’re already aware, Apple had an announcement or two of its own today, including the inclusion of a digital camera on the iPod nano. It’s unfortunate, but Apple events are really the black holes of this industry: on Apple event days, no other tech news can escape out into the wild. That is to say, unless your company name is Apple, Inc., you’d be better served laying low for the day, and make any announcements later in the week.

Looks like the never-ending “sync war” between Apple and Palm continues to rage on. According to numerous PreCentral forum contributors, iTunes 9 does NOT sync with their beloved Pres. What now, Palm?

Yesterday the Internet was abuzz with an offer from Sprint that involved a $100 service credit if you port-in a number and buy a Palm Pre. It was a fair deal but Sprint quickly pulled the offer and now explained what happened.

There have been a few rumors about Sprint cutting the price of the Palm Pre the last few days. Those might still work out, but until then there is this deal. There is a lot of fine print with the offer, but if you’ve been eyeing a Palm Pre, you should definitely see if you qualify.

That was quick. Forget about the rumor, the redesigned HTC Hero will launch on October 11 at $180 after a $50 mail-in rebate. And yes, that’s $20 under Sprint’s guided missile, the Palm Pre. So let’s recap, Sprint will soon be the only carrier with three of the hottest cellphones: the BlackBerry Tour, the Palm Pre, and the HTC Hero. And the carrier has some of the most reasonably priced plans. Nice.

You know what Canada looks like? It looks like the best part of town – where everyone is cool and gets drunk all the time without hangovers and where you used to go to raves when you were like 16 and now when you go back the rave places have grown up with you and become chocolate shops and classic book stores – but it looks like that all over the country.

Well, despite the fact that the wireless charging system for the Palm Pre is popular and functional, the analysts at Strategy Analytics say that it’s pointless. Come again?

Didja hear that RadioShack is rebranding? The hoopla will of course include some sales to drive traffic. Apparently the Pre will be part of this upcoming sale and will be only $150 for new customers. Nice.

If you weren’t one of the lucky ones that happened to snag a Palm Pre for $99 at Best Buy the other weekend thanks to a pricing snafu, LetsTalk.com has a deal for you. The website has managed to drop the price of the Palm Pre down to only $99 through a combination of instant and mail-in rebates.

There is probably a good chance that if you wanted the Palm Pre, you already snagged it at a Sprint store or Best Buy. Amazon now has the smartphone in case though.