Walmart, the biggest supermarket in the world seems to have undercut Amazon in the Palm Pre pricing stakes, and are now offering the Palm Pre smartphone for $79.99 on a 2 year Sprint contract reports itproportal.

To obtain the Palm Pre for $79.99 though, customers will be required to go through several rebates after paying the full price of $179.99 to bring the price down to that $79.99, and Walmart still offer the Palm Pre smartphone as a PAYG handset which commands a price tag of $500.

Observers are commenting that the new Palm Pixi will need to be offered as a free handset or be priced below the $80 mark on contract to sell now that the Palm Pre is available at this low price.