DOW JONES NEWSWIRES 
 

Sprint Nextel Corp. (S) said Tuesday the eagerly awaited Palm Inc. (PALM) Pre smartphone will be available nationwide June 6.

The announcement comes as analysts and investors were waiting to see whether Palm is able to meet its own deadline for the release of the smartphone, which will compete with Apple Inc.'s (AAPL) iPhone. Sprint had said it would have the phone on the market by the end of June.

The phone will cost $199.99 with a two-year service agreement and after a $100 mail-in rebate. Collins Stewart analyst Ashok Kumar said earlier this month the Pre could be a huge flop if Sprint wasn't able to match or price below the $199 price tag on the iPhone.

Sprint said Tuesday the phone would be sold at Best Buy Co. (BBY), RadioShack Corp. (RSH) and some Wal-Mart Stores Inc. (WMT) stores. It will also be available through Sprint's Web site.

Wall Street has estimated sales of about 6 million Pre units in 2010, although Kumar said in a note earlier this month he thinks that number is unrealistic based on Sprint's current subscriber base.

Sprint is hoping the phone will help it pick up some of the iPhone's market share and, in doing so, reverse its trend of subscriber losses. The company has lost more than 6 million subscribers in the last six quarters.

Palm's shares closed Monday at $12.06, and Sprint's closed at $5.32. Neither has traded premarket.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com