Palm, which made a big splash in the smartphone market with the recent release of the Pre, is far from done in the market.

The Wall Street Journal is reporting that a lower-priced smartphone, the Eos (codenamed Pixie) is coming as early as this Fall. The Eos could be priced as low as $99 with the standard two-year contract, initial stories are saying.

The Eos is the successor to the Centro, Palm’s final PalmOS phone.  Among the alleged features are a 2.6-inch touchscreen, physical keyboard, 2MB camera and 4GB internal memory, which puts below the level of the very first, lowest-level iPhone. Still, for the price, that’s not bad.

The Eos is obviously aimed at the bottom end of the smartphone market. The question is whether, in this economy, a significantly cheaper phone with more limited capabilities will appeal to buyers of the iPhone, Android G1, BlackBerry and big brother Pre. In my opinion, it’s always good to have more options and a range of prices. Bring it on, Palm!