Tesco to follow-up Hudl success with Samsung Galaxy S5 "challenger"

Tesco plans to release its own Android smartphone later this year on the back of the company's success in the tablet market.

The retail giant's low-cost Hudl tablet has thrived since its release in September 2013, notching up sales of more than half a million units so far. A successor, aptly named the Hudl 2, is set for release in September 2014.

The move to mobile draws parallels with Amazon, who has long been rumoured to be releasing its own handset on the back of the Kindle Fire's encouraging sales.

Tesco's first mobile device might not be as budget a model as you'd expect, too.

During a BBC radio interview, CEO Philip Clarke revealed the phone will come loaded with Tesco services and would have specifications "comparable" to Samsung's flagship Galaxy S5. To give the new handset an edge, added Clarke, it will be aggressively priced to offer customers the best value for money.

Whether the mention of the Galaxy S5 is an attempt to stir the pot or not remains to be seen, but continued choice in the Android market can only be a good thing, especially with the recent release of EE's 4G Kestrel.

Tesco already operates its own phone service, Tesco Mobile, and sells devices for all networks in its stores.

Clarke also hinted that he would be changing the way the firm's strategy operated. Calling it "New Tesco", he outlined his efforts to change the focus of the company away from superstores and towards smaller community-based shops.