Tesco deal could take the iPhone mass-market

Thu, 26 Nov 2009 | By Alex Farber

And dreams of Tesco adopting mobile vouchers through its point of sale system and turning them mainstream kept the investment flowing into the sector. So Tesco stocking the iPhone, while unsurprising given the partner for its mobile virtual operator, Tesco Mobile, is O2, is good news for the mobile content market.

The iPhone effect is undeniable. It’s revolutionised the whole market and breathed new life into many a business. Research this week even discovered iPhone owners are happier to pay for online content than the average person.

However, this effect has been skewed, goes the oft-held belief, by the iPhone’s affluent, middle class demographic. Getting the phone on the shelves of Tesco could go a long way to taking it truly mass market and therefore spreading the iPhone effect much further.

And Tesco Mobile customers are reportedly heavy data users on its mobile content portal and are therefore a primed market for the next generation of mobile content the iPhone offers.

But to achieve this mass market promise it’s crucial Tesco prices competitively. The iPhone is still seen as a top-end product by many and canny subsiding in the way only Tesco knows how will be vital.

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