Grocer Tesco has shelved plans for its Hudl smartphone in the face of fierce competition in the smartphone market.

Tesco was developing a an aggressively priced 4G smartphone handset that would be capable of taking on the Samsung Galaxy S5, but is now reviewing its strategy.

In a blog post, Tesco group multichannel director Robin Terrell said: “As we developed the idea in the first few months of the year, we could see a gap we could fill for our customers.

“The technology sector is fast changing and constantly evolving and since then, the mobile market has become even more competitive. So in early July, I took the decision that we would put the phone on hold and concentrate on the Hudl 2 tablet.”

Terrell claims its Hudl tablet has been “tremendously successful for families” by bringing to market a product that is affordable for all its customers.

Tesco has now sold more than half a million Hudl tablets since launching ahead of Christmas last year.

Terrell added: “We have built on the success of Hudl to develop Hudl 2, which will launch soon. Giving just a little detail away, Hudl 2 improves on just about every area of its predecessor, from screen size to speed, design and accessories.

“Where the first Hudl was used by many as a secondary device, Hudl 2 has the capability to take its place as customers’ primary tablet in the home.”

News that Tesco is shelving plans for a smartphone comes ahead of tonight’s announcement by Apple, where it is expected to launch the iPhone 6 and the iWatch.

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