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Tesco to sell iPhone in possible price war

by Iain Thomson

26 Nov 2009

Comments: 14

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Apple iPhone
Tesco's announcement raises the possibility of a price war with Orange

Tesco has confirmed that it will sell the iPhone as part of Apple's move to open up its UK distribution channel.

The UK's largest retailer will start stocking the phones "shortly" in its Tesco Mobile shops set up with O2. Reports suggest that Tesco will offer the handsets before the all-important Christmas retail rush.

"It is a bit of a coup to get this before the other operators," said a Tesco Mobile representative.

The move will be a blow to Vodafone, which will not be able to sell the iPhone until after Christmas, and raises the possibility of a price war with Orange, which has also secured a handset deal with Apple, but at similar prices to O2's.

Tesco is getting heavily into the UK mobile phone market with plans to double the number of Tesco Mobile outlets to 200 by the end of 2010. If the company decides to compete on price, as it has in other markets, operators could face a price war over mobile tariffs.

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