Tesco is poised to launch its own tablet computer as it seeks to take on rivals Apple and Amazon.

The tablet is expected to go on sale this Christmas, according to The Sunday Times. It will be preloaded with books, films and music and also have apps for Tesco’s digital grocery products, and film and music service Blinkbox.

Sources told the paper it would be a high-quality device, similar to Amazon’s Kindle Fire – which costs £130 – but Tesco has not yet decided how much to charge for its tablet.

The move is aimed at taking on Apple and Amazon, which is understood to have dented Tesco’s DVD, books and music business.

Tesco chief executive Philip Clarke is also seeking new ways of connecting with customers as part of the turnaround of the UK business.

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