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Tesco Offering iPhone Could Start iPhone Price War

Beating Vodafone UK to the post, it appears that UK supermarket chain Tesco is to offer the iPhone 3G and iPhone 3GS in time for Christmas which could spark off an iPhone price war although exact iPhone pricing and a confirmed launch date is not currently known reports the Times Online.

However it is expected that the UK’s fastest growing mobile operator will sell the iPhone in its stores and via Tesco Direct “shortly” and will offer the options of pay as you go and contract deals and is currently still in negotiations with Apple over start date and pricing.

With O2 UK losing exclusivity on the iPhone, Orange UK fought hard to win the iPhone, and Vodafone UK unable to offer the iPhone until next year, Tesco’s entry into the iPhone market could potentially offer customers a cheaper iPhone in December and strike a blow to Orange.

If Tesco’s brings in the iPhone at a lower price it could well spark off a pricing war that would see many more people being able to afford the iPhone. Although with Tesco Mobile the iPhone is still sort of with O2 as Tesco Mobile is a 50/50 venture between Tesco and O2.

So here’s to hoping that Tesco prices the iPhone at a lower price point, sets off a price war and Christmas comes early for all the iPhone wannabees out there.