The UK retailer is building on the success of its Hudl tablet.
Supermarket giant Tesco is looking to release its own-brand smartphone before the end of the year in efforts to build on the success of its Hudl tablet.
The retailer’s CEO Philip Clarke said the device would run on Google’s Android software and would be pre-installed with Tesco services, such as Tesco Bank and online shopping apps.
The smartphone comes following the success of Tesco’s Hudl tablet launch last year at a cost of £119.
Tesco sold over 500,000 Hudl tablets before Christmas and is planning to launch a second version, the Hudl 2, later this year.
Full-year trading profit fell 6% in Tesco’s last financial year to £3.3bn with sales under pressure in the UK, easter Europe and Asia.