UK retailing giant Tesco has confirmed that it will be selling the iPhone as part of Apple's moves to open up its UK distribution channel.
Tesco Mobile confirmed that it would introduce the iPhone 3G and the latest 3GS model in the UK before Christmas as part of an existing JV with operator 02.
The iPhone distribution deal is the fourth that Apple has struck in Britain following 02, Orange, and Vodafone which is scheduled to sell the handset next year.
Although a launch date has not been confirmed, Tesco Mobile's iPhones will be offered on contract and pay-as-you-go deals.
Tesco is aggressively ramping up its efforts to take on the mobile market with plans to double the number of Tesco Mobile outlets to 200 by the end of 2010 building up to a network of 500.
Last week Tesco told analysts that it wants to more than double the profit it generates from non-grocery businesses like its bank and telecoms services. It also announced that it would be partnering with Cable & Wireless in a five-year deal to provide broadband and home phone services alongside Tesco's mobile telecoms offers.
The retailer said it sees potential to generate €2.2 billion of revenue and €220 million of profit from telecoms in the medium term.