Tesco is ready to launch its own tablet computer as it takes aim at rivals Apple and Amazon.
The new tablet is expected to go on sale this Christmas, according to The Sunday Times. It will be preloaded with books, films and music and also have apps for Tesco’s digital grocery products, and film and music service Blinkbox.
Fiona Keenan, consumer insight director at Kantar Worldpanel, commented: “Releasing a tablet linked to its own digital download service, Blinkbox, is a smart move by Tesco. Tablet owners are incredibly loyal to the download store they are first linked to – 92% of Apple customers that download digital video do so via iTunes and Google has also been successful in attracting its tablet users to the Google Play store.
“While this level of loyalty will be challenging to achieve, Tesco is in a good place to profit from both initial hardware sales and the long-term boost to its digital services.”
Sources told the paper it would match Amazon’s Kindle Fire in terms of quality – which costs £130 – but details are still scarce on how much Tesco will charge for its tablet.
Tesco won’t be the first supermarket to launch its own tablet as Asda released its own £99 tablet in July 2011.
The move is aimed at taking on Apple and Amazon, which The Sunday Times say have ‘wrecked havoc’ with Tesco’s DVD, books and music business.
Tesco chief executive Philip Clarke is also seeking new ways of connecting with customers as part of the turnaround of the UK business which includes the new Tesco Extra store in Watford opening last week.