Palm (PALM) will follow-up the Pre smartphone with a smaller, cheaper device known internally as the Pixie, according to TechCrunch. Like the Pre, the Pixie would be based on the company’s new WebOS operating system. TechCrunch says the Pixie would be targeted at the lower end of the smartphone market, and have a target price of $99. (I would note that the company has yet to say where it will price the Pre.)

The device would physically resemble the Centro, but with new the new software, according to the post.

Palm today is up 40 cents, or 4%, to $10.29.