Tesco is seeking to replicate the success of its budget tablet, Hudl, by launching its own Android smarthphone before the end of the year.
Tesco boss Philip Clarke said the phone will be comparable with the Samsung Galaxy S5 and announced a second version of Hudl will be released later in September.
But the announcement was met with scepticism by a leading analyst who accused Tesco of creating a “sideshow” to divert attention from its plunging profits.
Shore Capital analyst Clive Black said: “Tesco is clearly taking the digital world seriously but such developments appear something of a sideshow from the implosion of its market share. It could introduce Hudl95 and it will not make a bit of difference to its market share or basket size.”
Rival Sainsbury’s will post its full-year results tomorrow. Chief executive Justin King is expected to address the supermarket price war kick-started by the rise of Aldi and Lidl in his swansong.