Amazon offers Palm Pixi for $25

Cash-strapped webOS hopefuls and deal seekers alike, take note: Amazon is offering Sprint (NYSE: S)’s Palm (NSDQ: PALM) Pixi for just $25. The entry-level webOSsmartphone hasn’t been on market for more than a week and we’re already seeing the handset hovering dangerously close to “free with contract” territory. As it stands, Amazon will sell you the Palm Pixi for $24.99 when you purchase it with a new 2-year wireless contract through Sprint.

Remember, though, the Palm Pixi’s entry-level price comes with compromises. The 2.6-inch capacitive touchscreen is smaller than the Palm Pre’s display. The 2-megapixel camera falls short of the Palm Pre’s 3-megapixel shooter. And, WiFi isn’t an option. Still, you get GPS, 3G data, 3.5mm headphone jack, and 8GB of onboard storage.