Argos has joined the intensifying retail tablet war by launching its own device, as companies such as Tesco attempt to use the technology to mop up extra customers.
The £99.99 Android tablet from Argos comes a month after Tesco surprised both analysts and consumers by launching its own Hudl device. Both Tesco and Argos's tablet will come preloaded with apps that let users shop online with the retailers.
"The price of tablets has dropped to the point where tablets are becoming customer acquisition tools," said Benedict Evans, mobile analyst at Enders Analysis. "Retailers are thinking about how they can use it to build their business."
Tesco has a large media presence via services such as its video-on-demand offering Blinkbox, which come preloaded on the tablet. By comparison, Argos has few online services beyond retail and simply wants a piece of the UK's fast-growing tablet market.
Joanne Savage, head of own-brand products at Argos, said: "Argos is already a destination for tablets. So it made sense to let customers buy one on our own brand range. We think it will help us to extend the category out to different Argos customers."
The company refused to disclose the planned margin on the product, but said that the new tablet was designed to increase footfall.
Despite barely existing three years ago, the market for tablet devices has exploded, with 15m tablet users in the UK alone. Enders Analysis forecasts that this number will triple to 44m in 2020.
Argos has ridden this wave of demand with some success. The strong sale of tablets played a large part in Argos posting its first positive like-for-like sales in five years in May.
Both Tesco and Argos will find themselves up against established manufacturers such as Acer, Lenovo and Hewlett-Packard, who all offering tablets at similar prices to the £119 charged by Tesco.
"We are seeing a flood of generic tablets at [about] £100 and Argos sees some value in putting their name on one," said Mr Evans.
Retail analyst Nick Bubb suggested that the tablet might cannibalise Argos's own sales of more costly tablets.
The move is the latest attempt by Argos to stop losing market share to online-only competitors, such as Amazon. Its efforts range from installing WiFi in all its stores to letting eBay customers collect their goods in stores.
Argos has been relatively successful in helping its customers move beyond the its traditional paper catalogue. About 15 per cent of Argos sales are made online via mobile devices, such as tablets.
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