PalmOne upped the price of unlocked Treo 650 phones from $599 to $699, citing an error in pricing as the reason for the increase.

"Unlocked" phones are not attached to a service contract with a specific carrier. Generally, phones are subsidized by a service provider when they're purchased under a contract; in most cases, unlocked phones are more expensive than those linked to a contract.

PalmOne said Wednesday it would be offering an unlocked version of its Treo 650 phone for GSM/GPRS networks for $599. However, on Thursday the company increased the price to $699, saying the $599 price was a mistake.

The company said it received customer complaints about the price change and has said it would honor sales made before the Thursday evening pricing change.

news.com.com

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