Sprint has slashed the price of the Palm Pixi in the US down to $50 in an attempt to bolster sales of the entry-level webOS phone.

Originally priced at $349.99, the new Sprint price now includes an instant $200 off followed by a $100 mail-in rebate.

The news comes as Palm issued warnings to Wall Street that it hadn't sold as many phones as it had hoped.

"Revenues for the quarter and full year are being impacted by slower than expected consumer adoption of the company’s products", the company said.

On Saturday the company released the latest version of its webOS 1.4 to Sprint, O2 and Movistar bringing video recording to the Palm Pixi and Palm Pre.