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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