The success of Tesco’s budget Hudl tablet has meant that the supermarket chain is looking to launch an updated Hudl 2 later this year along with Tesco smartphone.

In an interview with BBC Radio 5 Live’s Wake Up to Money programme, Tesco chief executive Philip Clarke said that the yet-unnamed Tesco smartphone would be designed to compete with high-end smartphones such as the Samsung Galaxy S5 and Sony Xperia Z2, but would also be “aggressively priced” at around an estimated £300.

At this price, Tesco look to be targeting Google’s popular Nexus 5 smartphone and even possibly the wildly successful Motorola Moto G, which sels for just £115 without a contract.

Clarke also said that a second generation Hudl tablet would be released in September, with the company looking to repeat the sales figures of the original, with 550,000 Hudls have flown off the shelves since it was launched last September.

Both new devices will come with Tesco apps pre-installed, and may come with bundles for services such as Tesco’s video streaming service Blinkbox, which is looking to compete with Netflix and Amazon’s LoveFilm.

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