Updated at 2 p.m.

The speculation was partially correct.

Sprint is not offering a $50 price cut on the Palm Pre smartphone, as was rumored early today. It's $100 -- in the form of a service credit to new customers.

The promotion, which started today and ends Oct. 10, essentially cuts the price of the Pre from $199.99 to $99.99.

The service credit will be applied to a new customer's account within three invoices. Customers must sign up for a two-year contract.

The Pre was launched in early June, and has been selling for $200 with a two-year contract and mail-in rebate.