Everybody panic! Actually, don’t.

A number of blogs are reporting on a story by OTR Global claiming that Palm has suddenly told Foxconn (the Taiwanese manufacturer building all of Palm’s handsets) to halt production of the Pre, Pre Plus, and Pixi Plus. This claim, it seems, is greatly exaggerated.

We just got off the horn with our own sources on that side of the ocean – and according to them, all is well. There is a production break throughout a few days in February, but that’s been planned for some time now. The reason for the break? Chinese new year!

Following the holiday, production on all models should resume as normal. Pixi Plus and Pre Plus units will presumably see less production than they did at the beginning of the year, as production was ramped up in preparation for the Verizon launch.