Tesco to start selling iPhone on Dec. 14

Tesco Mobile is to sell the iconic Apple iPhone on Dec. 14, a move seen by experts to trigger a price war in the UK. Tesco said both the iPhone 3G and iPhone 3GS would be available in its stores across the UK starting on Monday.

Tesco’s decision to sell iPhone is expected to provide competition to Orange and Vodafone which started selling the internet-based handset ahead of Tesco Mobile. Tesco’s stores are visited by an estimated 42 million shoppers every week, including multiple trips by individuals.

The company said buyers of iPhone would receive Clubcard loyalty points. Tesco has 16 million Clubcard holders across the UK. Tesco said, “We want to bring a bit of Tesco value to the iPhone tariffs.”

The supermarket chain added, “Obviously, with all our tariffs, handsets and top-ups on Tesco Mobile customers get Clubcard points and the iPhone will be no different.”

Tesco Mobile’s iPhones will be offered on contract and pay-as-you-go deals.

Fraser MacDonald, editor at Stuff Magazine,  said Tesco’s entry into the sales of iPhone could convince other carriers to look to undercut each other on the cost of high-end mobile internet device.

MacDonald added that Tesco can dictate the price war should it decide to sell the handset on behalf of network carriers or offer a sim-free version. He said the price war would benefit the consumers and expand the customer base for the handset.

“There are a lot of people out there who can’t afford one who would like to get their hands on one,” MacDonald said.

Tesco Mobile announced in November it would start selling Apple iPhones before Christmas. This is is a 50:50 joint venture between Tesco and O2. It plans to expand its presence in the UK mobile phone market and is set to double the number of Tesco Mobile centres to 200 by the end of next year.