The Palm (PALM) Pre officially went on sale this morning, and judging from initial reports–and my experience at a local Northern California Sprint store–neither demand or supply was particularly overwhelming. Certainly, lines for the device were far shorter than those that extended from Apple (AAPL) stores for the launches of the iPhone and the iPhone 3G.

Arriving outside my local Sprint (S) store about an hour after they first opened, I found not a queue of eager Pre-buyers, but two kids making forts out of a few Pre shipping boxes left outside the store. Inside the store, I found a group of nine people waiting in line to add their names to a waiting list for the device, which was already sold out at this location. A Sprint rep refused to tell me how many Pres had been sold this morning, but admitted that the shipment had been a small one.

The situation is apparently the same across the country. The Boston Globe reports that Sprint’s Back Bay store sold out of its 55 Pres by 11 AM. An informal survey by 24/7 Wall Street reveals sell outs or fast-dwindling supplies of the device at Sprint and Best Buy stores in Chicago, Houston, San Francisco and Los Angeles. Four of the five Best Buy stores I contacted reported selling out of the Pre very quickly; one representative told me his store had just four of the devices and he believed that to be the case at many other locations.

Sprint stores I spoke with in LA, Chicago and Boston told me they’d sold out by late morning.

Q: How many names on the list? A: “We’re not allowed to say.” A reader tells me that the line outside the W. Division Street in Chicago was at least 50 people long, and that the store started wait-listing people somewhere around #36. Another reader reports a line of about 20 people outside an Emeryville, CA Sprint store. That same reader claims a clerk told him the store had 60 Pres on hand. Still another reader reports that the line outside Sprint’s Market Street store in San Francisco started at 6 AM this morning. There were a dozen or so folks in line by about 7:30 AM. Finally, another reader reports that a Sprint store in San Francisco’s Castro district had a line of about 40 people when she showed up to get in line at 7 AM. That location, too, sold out quickly.

Four phones at the local Best Buy? Stores in Marin, LA and Chicago sold out within hours? Makes you wonder if Palm and Sprint are purposely constraining supply to foster an image of overwhelming demand.

First the company gave us CADIE (Cognitive Autoheuristic Distributed-Intelligence Entity), an “artificial intelligence” tasked-array system with the personality of a 12-year-old girl and accompanied by its own homepage, YouTube channel, blog, monograph and versions of Google Earth and Google Maps. And to these, Google has added Google LOLCODE, Google Brain Search, Google Chrome with 3-D and a new Gmail auto-reply feature. The search giant also announced a new upside-down viewing option for YouTube and an automatic red-eye function for Picasa.

Overkill? Maybe, just a little. Google (GOOG), of course, wasn’t alone in pumping the Web full of pranks. Seems people with Web sites everywhere fancy themselves Don Rickles today. Hotels.com began taking reservations for rooms on the Moon. And Expedia (EXPE) began offering flights to Mars. Microsoft (MSFT) renamed its Kumo search product Omuk and unveiled Alpine Legend for Xbox 360. Some angry librarians staged a Kindle burning in a Los Angeles park. Ashton Kutcher’s Katalyst Media appointed Gary Busey as Director of Human Resources. Torrent index The Pirate Bay partnered with the hopelessly litigious Warner Bros. The Guardian adopted an all-Twitter publishing model. Gizmodo was taken over by spam overlords. Amazon (AMZN) launched a brand new cloud-computing dirigible called Floating Amazon Cloud Environment, or FACE. Yahoo (YHOO) debuted an Ideological Search. And, finally, Qualcomm (QCOM) took convergence a bit too literally.

There are plenty of others, of course, far too many to mention here, and most of them unworthy of that mention in the first place. As Good Morning Silicon Valley aptly notes, “The sad fact is that pranks are like fireworks–once amateurs get to fiddling around with them, somebody’s going to end up lame.”

I live in downtown Los Angeles, where 3G coverage is a given, and not only is the 3G wonky and unreliable, but oftentimes I’m struggling to even get decent Edge support! Edge is absolutely worse on my new 3G than it ever was on my first-generation iPhone. Adding insult to injury, I drop multiple calls every day, something that rarely happened before my ‘upgrade.’ “

– A post to Apple’s iPhone 3G discussion forum

Good thing the iPhone was chosen as Time Magazine’s 2007 Invention of the Year, because a growing chorus of discontent suggests its successor is unworthy of the honor in 2008. Voice and data reception issues have been troubling the device for weeks now and it seems the blame for them lies not with the network carriers, but with Apple (AAPL) itself. On Wednesday, T-Mobile Netherlands stepped forward to blame Apple for the reception issues with the iPhone 3G. “We suspect that it is a hardware/ software-specific issue of the iPhone itself,” the company said in a (poorly translated) blog post. In Australia, Vodafone also blamed the iPhone 3G’s reception issues on Apple. In Sweden, engineering weekly Ny Teknik claims that iPhone 3G’s sensitivity to third-generation wireless network signals is well below the 3G standard.

In the states, “well-placed sources” have told BusinessWeek that the Infineon Technologies (IFX) chip Apple chose for the handset is undermining its performance. And they are not the first to make such claims. Earlier this week, Nomura analyst Richard Windsor fingered the device’s chipset as the problem as well. “The 3G iPhone has been out for a month, but signs of problems are appearing that should give competitors some breathing space,” Windsor said in a report to clients. “Problems include high incidence of dropped calls, switching onto EDGE while the device is stationary and loss of reception while in good coverage. We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain Infineon is the 3G supplier.”

So if that’s truly the case, what’s the solution? A firmware upgrade, most likely. Those “well-placed sources” mentioned earlier say Apple and Infineon are prepping one for September release. In the meantime, the companies are sticking with time-tested workaround: “no comment.“