Why so much more than the iPhone? Well, the iPhone is only that cheap because it is sold with a subsidy lock tying it to AT&T, and they make up the money on the back end with the contract. The Palm Treo Pro has not been picked up by a carrier in the US, so it is only available unlocked – so it is usable on any GSM network. Just pop in your SIM and go.

It is a very nice smartphone. Windows Mobile 6.1 Professional running on a 400MHz CPU with 128MB RAM and 256MB storage (100MB user accessible). 320×320 screen, HSDPA/UMTS/EDGE/GPRS/GSM – tri-band UMTS and quad-band GSM, 802.11b/g with WPA/WPA2, GPS, BlueTooth 2.0+EDR, 2MP camera, microSDHC slot (up to 32GB), a real 3.5mm headphone jack, micro-USB connector, and a real QWERTY keyboard.

It is really aimed at high end business users, a more powerful alternative to the Blackberry. (And no having to decide between GPS and WiFi!) But not being available with a contract for a cheaper price is probably going to really hurt sales.

It has been perhaps Palm’s worst kept secret, long rumored as the ‘Treo 850′ with leaks posted on many sites, but Palm has finally officially announced the Palm Treo Pro. The Treo Pro is the latest in Palm’s Treo product line, though it looks more like a next-generation Centro than past Treo models. But while the Centro is an inexpensive entry-level smartphone running Palm OS, the Treo Pro is a high-end smartphone running Windows Mobile Professional 6.1.

The Treo Pro is fully tricked out with a 400MHz CPU, 256MB memory (100MB user accessable), 128MB RAM, 802.11B.g WiFi, 3G cellular support with HSDPA/UMTS/EDGE/GPRS/GSM (tri-band UMTS, quad-bad GSM), GPS, a 320×320 touchscreen, Bluetooth 2.0+EDR, microSDHC card support, a 3.5mm headphone jack (aka a standard jack, not the tiny 2.5mm jack on many phones that requires an adapter), and a 2.0 megapixel camera. And Palm has done their usual job of enhancing the WinMob interface to make it much more usable.

Since it is a GSM world phone it should work on pretty much any GSM-based carrier, such as AT&T or T-Mobile, but it won’t work on CDMA carriers like Verizon or Sprint. Palm is also touting the ability to use the Treo Pro as a high-speed cellular modem for your laptop, aka tethering, over USB or Bluetooth.

I think it is a sharp looking phone with a very clean, functional design. If I didn’t dislike WinMob so much I’d really be tempted, and with Palm’s tweaks WinMob 6.1 might even be tolerable. But I’d really love to see something like Google’s Android on that kind of hardware. Maybe there is some hope for Palm’s own ‘Palm OS II’ Linux-based OS, it might be nice on a phone like this.

If you like what you see, it’ll set you back $549 for an unlocked model. It apparently hasn’t been picked up by AT&T or T-Mobile, so it isn’t available for less with a contract at this time.

Palm posted a video “featuring three of the Treo Pro’s very proud parents — Stephane Maes (VP of product marketing), Peter Skillman (VP of design), and John Moses (VP of customer relations)” in their blog.