Tesco is to launch an own brand smartphone this year to build on the success of its tablet Hudl.
The smartphone will run Google’s Android software, according to the BBC.
Tesco boss Philip Clarke told the BBC that the smartphone will come pre-installed with Tesco services, similar to the Hudl, which has sold 500,000 units so far.
The smartphone is expected to be positioned at the more premium end of the market, but competetively priced.
The move comes as the grocer prepares to roll out ‘pound zones’ within its stores as it aims to take on the pound shops.