Tesco launches UK iPhone assault, undercuts competitors with £20 deals

Great Offers at MacWarehouse“Tesco, the UK’s largest supermarket, aims to spark a price war with mobile operators over the Apple iPhone when it starts to sell the popular consumer gadget in the UK next week,” Philip Stafford reports for The Financial Times.

“The monthly contract to be offered by Tesco Mobile, the supermarket group’s joint venture with O2, is to be priced at £20, a third lower than competitors, in a 12-month deal, excluding the price of the phone,” Stafford reports.

“The supermarket’s entry into the iPhone market heralds mass adoption for the product that has galvanised the smart phone sector,” Stafford reports. “Orange and Vodafone recently won rights to sell the handset after Apple’s two-year exclusive deal with O2 ended in November.”

Full article here.

Dainel Bennet reports for T3, “Tesco’s Pay As You Go deal is what stands out here. The offer of unlimited data with a one-off cost makes it the ideal Christmas present for those unwilling to commit to contracts but still hankering for iPhone goodness.”

Full article here.

[Thanks to MacDailyNews Readers “breeze” and “Alex S.” for the heads up.]


  1. Yikes!!! How much will it cost to buy in the first place? It may work out to be more expensive than then other plans over a two year plan because of the likely subsidy in the purchase price in the first place.

    Tesco have never willingly old anything that cheapley!

  2. Every little helps but I pay £20 a month on o2 simplicity and get 600 mins 600 txts and unlimited data but the downside is I payed £550.00 for a 32GB 3GS upside is I only have a 30 day rolling contract so can que fir the next iPhone on launch day next year lol ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  3. When I am on the road every day, I don’t see those cheeper KIA cars. They cost much less than those SUV, Toyota, BMW, Chevy, … People don’t spend their money on the cheapest product or services. They carefully choose to buy what they want and can afford.

    They want the iPhone and all those apps! What do you get for less? Get a cheep flip phone and buy an iPod touch with all those apps.

  4. Oddly enough, Jersey_Trader, that’s exactly what I’m doing. Until the gouging of cell phone companies drops to a tolerable level, I’ll stay with my little el cheapo Koodo flip phone, and I’ll keep playing with my iPod Touch.

    I went price shopping for Canadian iPhone new deals, and while Bell Mobility had the best deal at that time with internet usage and all the bells and whistles, the bill, after service fees and taxes, still comes to well over 100$, and that doesn’t count the price of the iPhone. Robbers had a lower starting point for its basic package, but even the deluxe package was still trying to nickel and dime me. Imagine that! A plan that costs over 100$ still required system fees and DID NOT INCLUDE CALLER ID, which I would have to pay extra for. Telus fell somewhere in the middle.

    I applaud the UK company that’s trying to smack down the others. I say bring it on! Perhaps when REAL competition starts happening we’ll get competitive prices.

  5. I agree with Jersey_Trader, for the small extra functionality you get with the iPhone over the iPod touch — is it really worth all the extra money it costs?

    Maybe many readers here feel it is, but I don’t, and I imagine many other persons feel the same way.

    I have a cheap POS Nokia for making cheap calls via 3 Network, which also lets me make Skype calls for free over 3G. It basically costs me next to nothing to keep and use.

    Then I play with my iPod touch.

    Yes, I don’t have the video camera and GPS of an iPhone, but is it worth all the extra money for those features.

    Not for me, I have bills to pay.

  6. @Gadfly,

    I’m not signing with *any* of them until either their monthly rates drop to below 80$ tax inc. and/or their contract length drops below 2 years.

    And technically I *am* with Telus since Koodo is a subsidiary. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  7. The only good news about this was the 12 month contract.

    Tesco offer unlimited texts and calls for £30pm so they are technically charging £30 for data.

    Plus its still run on the o2 network, lets see what Vodafone come up with and what everyone puts the price to in the end.

  8. An iPhone would be nice but its way too costly for me. I never use texts and my monthly spend on mobile phone calls is only about £2. Cant justify the expense.

    Its an iPod Touch for me. Just bought a 32gb example from Comet with a free speaker dock thrown in.

    Does the freebee herald an improved iPod in February???

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