Tesco plans to fight Fire with fire

If Amazon’s gonna sell groceries, we’ll have Kindle basher

sunday times - predicts Tesco tablet. we nickname it the elh1

It seems that British supermarket chain, Tesco, is planning to take the commercial battle to its online rivals like Amazon and Apple by introducing its own branded tablet. Given that Tesco is currently the UK’s No.1 MVNO (Mobile Virtual Network Operator), then it’s got a pretty good chance of selling tablets and online services. The Sunday Times reports that the company is planning to ready a tablet in time for Xmas and pre-load it with its own apps. The news comes after Amazon is rumoured to be moving into online grocery sales – initially in the USA.

In reality, Tesco doesn’t have much choice because traditional profitable areas – such as CDs, DVDs, and books are increasingly all moving online.

A Tesco tablet – which we think should be called the ELH1 (Every Little Helps 1), would naturally come pre-loaded with Tesco’s own apps such as grocery ordering and banking.

However, more strategically, the tablet could come preloaded with Blinkbox which is the retails tore’s own online film and music service. To compete head on with Apple.

Tesco’s CEO, Philip Clarke, has followed the purchase of Blinkbox by acquiring digital book platform Mobcast, and digital music platform WE7

Blinkbox plans to introduce an e-book and music streaming service in Q3-Q4 2013.

Tesco has also unveiled Clubcard TV, a free Internet television service with child-friendly programmes for the 16 million members of Tesco’s shopper loyalty program.

The only crucial decision which Tesco doesn’t appear to have made yet is how much it will charge for the ELH1.

Naturally, it will want to offer a device with a high spec to compete directly against Amazon’s Kindle Fire.

But will Tesco subsidise the price? In the UK, the Kindle Fire costs £130 which puts it right at the bottom of the tabletprice range.

About Tony Dennis

Tony is currently Editor of GoMobile News. He's a veteran telecoms journalist who has previously worked for major printed and online titles. Follow him on Twitter @GoMoTweet.
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