Palm and Sprint may think they have it all their own way, but a report on gearlive, if true could be a direct and devastating assault on the Palm Pre.

The report has it that the new iPhone Video may launch as soon as this coming Monday after a WWDC 2009 announcement, and although this report isn’t actual confirmation, Gear Live has in the past proven to be a most reliable source of information.

Apparently, the iPhone Video will become available in 8GB, 16GB and 32GB and will initially be available from Apple locations as a limited supply with a second smaller version to be released at a later date.