UK-based multinational grocery and general merchandise retailer Tesco is all set to unveil a new device which is expected to be a low-priced, own-brand entry into the tablet market on September 23, 2013. Invitations have been sent out by the retailer for the launch event and they say, “We’ve got something to show you”.
Mobile analyst with the research firm CCS Insight, Ben Wood suggested that Tesco might try to price the device at £99. The device is expected to have a 7-inch screen. Wood said, “Obviously it’ll be [running Google’s mobile operating system] Android, probably [a storage capacity of] 16GB and attempting to hit the £99 price point — in my mind that will have to be the price”.
With the latest device, the company will be able to hit the £99 price by using a cashback-kind of promotion. The analyst suggested that he can see Tesco using a substantial discounts on other services, like bundled media from Blinkbox, or vouchers for discounts on petrol or groceries through its ClubCard loyalty scheme. The new tablet will also take on the competitors like Apple, Google and Amazon.
Tesco is looking to capitalize on online shopping, as well as video viewing and Wood said that the tablet market has become unbelievably competitive with very narrow margins, but Tesco is used to it.
Photo Credits: Independents