A few days ago, rumors popped out that Palm would be selling the Palm Pre for $399. A critical backlash followed with bloggers across the web saying Palm was undermining their own success, claiming this pricepoint was absolutely absurd. AllThingsD even published (and then unpublished or?) an article called, “Pre at $399? No Way Palm’s That Stupid”

Apparently, Palm isn’t that stupid.

The source of the initial rumor is clarifying their statement saying that the $399 pricepoint they initially pegged would be WITHOUT a contract. They also said Palm is considering a number of pricepoints including $499/$399 without contract and $199/$149 with a contract. They’ll wait and see what the market conditions are like before they set an official price which, considering the economic circumstances, is a great idea.

This is great news for future Palm Pre owners as even at $199 you’re getting one of the most affordable, elite smartphones on the market. BOOYAH!

Lets just hope these rumors don’t get recorrected way upwards!