Guess what? It may appears Palm is looking forward to drop 2 handsets running WebOS this year alone, the Palm Pre and something else which is said to be allot smaller.

Palm Pre

An alleged reliable source from Pam apparently told TechCrunch that Palm has a smaller WebOS based handset in the works, which is slated to go on marketing fall 2009, this could be the answer to the rumored iPhone Nano or something. Seeing as it will be smaller than the Pre, I don't see how they will be able to fit a physical QWERTY keyboard on to that thing so my best guess an on screen keyboard will be chosen here. More info will be released.

Gizmodo]