According to a source from Asia that is quoted by Arrington, "Palm has decided to put the Pixie on hold until they have better visibility into how its current models are selling in the market."
We know that the Pre broke all of Sprint's sales records over its first weekend of availability, but we don't really know what that means. Arrington digs up some interesting information on this point. According to his sources, Palm ordered 500,000 Palm Pre's (for a May delivery date) from manufacturer Foxconn. Instead, Foxconn was only able to scrap together about 150,000 of them, and didn't have them ready until June. Perhaps that's why then-Palm-CEO Ed Colligan suggested that the device might be in short supply at launch.
None of this is being corroborated by Palm, of course.
Analysts believe Palm and Sprint sold between 50,000 and 100,000 Pres during its first weekend. That pales when compared to the 1 million iPhone 3Gs that Apple says it sold the first weekend that device was available.
How many did Palm and Sprint sell? Who knows. Even 50,000 is nothing to sneeze at, but it's far from a smash hit. Will Palm wait until more Pres are sold? Will it wait until more developers voice support for webOS? Does the Pixie even really exist?
Many believe that it does. Just don't expect to see it on store shelves any time soon.