Facebook, Pandora Come to Android, Palm Debuts Inexpensive Pixi

Two "top-tier" mobile apps previously missing from the Android pantheon are now available: Facebook and Pandora. Though not as complete as its iPhone cousin, the Facebook Android app is pretty functional. Here's a video demo of how it works.

In hardware news, Palm has now launched the Pixi (formerly EOS or Pixie). It promises to be cheaper (maybe $99) than the Pre, which is coming down in price to $149 to boost sales. Here's a "hands on" video of the new Pixi from Engadget:

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It uses the WebOS like the Pre and in some ways appears more functional than its more expensive sibling (you don't have to slide the keyboard open to enter characters or queries). It also reportedly has a better keyboard. If the price is $99 it's going to be a much bigger hit than the Pre for sure. The big differentiator is that the Pixi has no WiFi; however that's not going to be an issue for most buyers who jump at the lower price point.

The larger point here is that smartphone prices are creeping downward amid intensifying competition. The new Android Hero (from Sprint) is going to come in at $179. The Pre is now $150 and the Pixi may be $99. The iPhone 3G is $99 and Verizon was clearing out the Storm (in anticipation of Storm 2) for $50.

These kinds of prices will drive big smartphone sales, which drives mobile Internet usage.

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Video: Google improves the Android Market. Right now it's a pretty mediocre experience and not very conducive to discovery of new apps.