At 55x111x11mm and weighing 100g, the Pixi is smaller and thinner than the Palm Pre and features a 2.6in 320x400 multi-touch screen that offers the same gesture control functionality as the Palm Pre.
The Palm Pixi is the first handset to run Qualcomm's MSM7627 processor. It has integrated GPS and a 2Mp fixed-focus camera with LED flash, as well as an 8GB internal memory.
The phone also features Bluetooth connectivity but, unlike the Pre, won't have Wi-Fi.
The Palm Pixi comes with a rubberised black cover. Palm will also produce a selection of limited-edition alternative backs in a range of eye-catching designs, such as a hummingbird or a skull.
"With Palm webOS, we're creating a new, more intuitive smartphone experience defined by unmatched simplicity and usefulness," said Jon Rubinstein, Palm chairman and CEO.
"Palm Pixi brings this unique experience to a broader range of people who want enhanced messaging and social networking in a design that lets them express their personal style."
No UK availability or pricing details are available yet.
The Palm Pixi is smaller than the Plam Pre
Pixi owners can change the black rubberised case to reflect their mood
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See also: Palm Pixi is next phone to run WebOS