Tesco to compete with Apple, Amazon with the launch of iPad-like tablet
According to the Sunday Times, the world's second biggest retailer, Tesco, is currently planning to release its very own iPad-like tablet computer. Tesco's attempt to vie against the entertainment ecosystems made by companies like Apple and Amazon would be worth GBP100 million.
Reports said Tesco's device would feature Blinkbox, a video-on-demand service provider purchased by Tesco two years ago. Blinkbox would also try to steal the customers of services like Netflix and iTunes. Tesco's efforts were focused on entering the digital downloads market, an area that has been growing by 17% per year.
Tesco's move would be a part of a series of plans to strengthen its business. This year, Tesco's yearly profit plunged for the first time in 19 years. The retailer's full-year profit reported in April slumped to GBP124 million from last year's GBP2.81 billion. The amount was hit by a GBP1.17 billion cost on Tesco's Fresh & Easy, a US chain that failed. Moreover, Tesco incurred an GBP804 million writedown on an asset in the UK that the company has scrapped plans for development.