Rumours are circulating of a new Palm Treo 'Gandalf' smartphone. It's reportedly a low-cost device using the familiar Qwerty keyboard under a large 320 x 240 pixel display.

According to reports and images posted on various blogs , the Treo Gandalf appears to be a small Windows Mobile-powered smartphone. (Although some suggest the Palm Garnet OS will be powering the device.) The Gandalf resembles some of the latest slimline Windows Mobile keyboard-equipped devices such as the T-Mobile MDA Mail .

Proposed specifications are extremely sketchy, even by mobile rumour standards. A camera (with no resolution specified), MicroSD card slot, and Bluetooth are to be expected - but there's little else to go on. Palm has yet to comment on the speculation. Images posted of the Treo Gandalf also suggest Vodafone could be carrying the device, but nothing has yet been confirmed.