London-listed grocery store chain Tesco announced Monday morning that the store is launching its own branded seven-inch tablet. The device, which will go by the brand name Hudl, is priced at £119 ($190), right between the higher priced Samsung Electronics Galaxy Tab 2, priced at £130 ($210), and the lower-priced Kindle Fire, at £99 ($160), from Amazon.com Inc. (NASDAQ: AMZN).
The Hudl is aimed at the low end of the U.K. market. At the high end lives Apple Inc. (NASDAQ: AAPL) and its iPad mini, with a starting price of £269 ($430). Tesco’s Hudl uses the Android operating system from Google Inc. (NASDAQ: GOOG).
Tesco’s CEO said that the company is offering the new, low-cost device to make “technology accessible to more people.” Sure, and with luck, to get those people to sign up for the company’s Blinkbox video streaming service, which also competes with Amazon’s LoveFilm DVD and streaming service in the United Kingdom.
Picking a fight with Amazon is not the smartest choice a company could make. But Tesco is the fourth-largest retailer in the world, and the company says it can make money on the Hudl tablet, something that most analysts reckon is more than Amazon can say about its Kindle Fire.