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Apple's iPhone to be sold by largest U.K. retailer, Tesco

Tesco, the largest chain of stores in the U.K., announced Wednesday it will soon sell Apple's iPhone 3G and iPhone 3GS for use through the O2 network.

Tesco Mobile, the retailer's mobile virtual network operator, will "shortly introduce" the iPhone at Tesco Phone Shops in the U.K. The handset will also be available online through Tesco Direct.

Tesco Mobile is a joint venture between the retail giant and wireless carrier O2. Though products are branded Tesco Mobile, they rely on the O2 network. The service is pay-as-you-go.

The company plans to have more than 100 Tesco Phone Shops open in the U.K. by the end of 2009.

In terms of scope, the deal could be similar to Apple's introduction of the iPhone at Walmart, the largest global retailer. Britain's Tesco comes in third. Tesco Mobile products are available in regular Tesco stores, though the company's press release only makes specific mention of iPhone availability in its phone shops and online.

In the U.S., Apple began selling the iPhone at Walmart in 2008 just after Christmas. That was 18 months after the handset first debuted, and after another major retailer, Best Buy, was given access.

But Apple and Walmart have expanded their relationship this year. Some stores began adding an Apple-dedicated section in their revamped electronics sections. Some have speculated that move could be a precursor to Mac sales at the world's largest retailer.

In the U.K., O2 served as the iPhone's exclusive provider until its contract with Apple expired. That paved the way for competitors Vodafone and Orange to sell the smartphone.



44 Comments

monstrosity 18 Years · 2227 comments

About time! I was only wandering through the store yesterday thinking "I wonder when they will start selling them at Tesco" and by jove the date is nigh.

macmondo 16 Years · 73 comments

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

MacPro 19 Years · 19846 comments

Quote:
Originally Posted by macmondo

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

It's called 'covering both ends of the market.'

danielsw 16 Years · 906 comments

Quote:
Originally Posted by macmondo

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

It's called distribution. The more and better, the merrier. It also implies that these other entities are indeed INTERESTED in carrying the product. Shelf space has to be wisely spent, after all.

Your tacit criticism of Apple's own strategy for "trendy design in posh areas", makes you sound rather ambiguous. Are you waffling? Just what are you being critical of?

Anyone with any perception can realize that the product will sell itself, once it is in the hands of the consumer. Those who appreciate the attributes of the product might just venture further into the Apple World in some form or fashion--perhaps ultimately into the bright lights of a posh Apple Store!! (gasp!)

robodude 16 Years · 273 comments

Quote:
Originally Posted by macmondo

am I the only who thinks strange that when Apple opens its stores with trendy design in posh areas, in the same time lets sell its product at a Tesco?
they wanted to differentiate their products, so how is that philosophy now?

I agree mate, but the iPhone isn't a premium product like Macs, it's quite competitive. It's strange how the iPhone is really exclusive in the US (i.e. still tied to AT&T) yet Apple have taken a totally different route overseas for the most part.

While not LIDL, they could have chosen somewhere a little more upmarket