Tesco To Launch Smartphone By Year's End

Tesco has confirmed plans to launch its first own-brand smartphone.

The retailer said the phone would be available by the end of the year and run on Google's Android software.

The model would also be pre-installed with Tesco services, including Tesco Bank and online shopping apps.

Prices were not disclosed.

The smartphone is aimed at building on the success of the Hudl tablet it launched last year at a cost of £119.

Tesco has sold more than 500,000 of the budget tablets and plans to launch a second version later in 2014.

Its drive towards tech products is part of a wider turnaround strategy implemented just over two years ago by the firm's chief executive, Philip Clarke.

The core supermarket business had suffered against a backdrop of a lack of investment while rivals - and more recently discounters - have been eating into its dominant market share.

Mr Clarke vowed to win back shoppers with millions of pounds of price cuts after posting a second year of falling profits in April.

Full-year group trading profit fell 6% in Tesco's last financial year to £3.3bn - with its market share standing at a 10-year low of 28.6%.

Its focus on growth - in addition to tech products - has resulted in a return to the United States with its F&F clothing business.

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