Tesco is to enter the smartphone market with an Android device on a par with the Samsung S5, in a move that underlines how far the mobile market has shifted.
Tesco is looking to build on the success of its cheap Hudl tablet (pictured above), which sold 500,000 units last year, by entering the mobile market, where the firm sees a chance to boost its online sales growth.
Speaking on the BBC Wake Up to Money show, Tesco chief executive Philip Clarke confirmed that the phone would be launched by the end of the year, while the Hudl has already shifted another 50,000 units since the supermarket announced its results in April.
"The opportunity in multi-channel retail is what led us to develop the Hudl tablet. We‘ve sold 550,000 now and Hudl 2 is coming out in September and then there’s going to be a Hudl phone by the end of the year,” he said.
He confirmed the device would come loaded with Tesco services such as Blinkbox and its F&F clothing catalogue. According to the BBC, the device will be comparable to the Samsung S5 and come running Android. Tesco has yet to confirm these details to V3.
The plans come amid strong growth of digital sales at Tesco, with online sales rising 11 percent over the last year, set against an overall fall in profits by six percent.
The decision to release a Hudl smartphone underlines just how dynamic the phone market remains, with former giants like Nokia and BlackBerry on the wane, and new players looking to take a slice of the market, ranging from Tesco to Silent Circle.
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