UK retail giant Tesco is set to launch an own-brand smartphone before the end of the year, building on the success of its Hudl tablet line.

According to a BBC report, the device will have a specification “comparable” to Samsung’s Galaxy S5, and will have Tesco’s apps preinstalled – as does Hudl. While no details were revealed, it will apparently be priced “aggressively”.

And an updated Hudl tablet is also set to debut in the third quarter, ahead of the lucrative Christmas holiday sales period.

While a number of retailers worldwide have stepped into the tablet market, this has not been the case for smartphones, where operators still control many of the channels to market.

In addition to its retail properties, Tesco also owns an MVNO, providing it with a wide customer base to sell a smartphone to – similar to the “own brand” ranges of traditional mobile operators.

But its decision to offer a high-end device is somewhat surprising, what with the fierce competition in this space from rivals such as Samsung, Sony, LG, HTC and Huawei in the Android camp.

The retailer’s tablet efforts have focused on a low-cost device with entry-level specifications, where it has been able to compete on price more than specifications.

Tesco’s WiFi-only Hudl tablet proved something of a sales success in the Christmas holiday sales last year, shifting more than 500,000 units.

The device is bundled with apps linking to various Tesco services, including its personal finance products and Blinkbox media service.

And the company is not the only retailer to be eyeing an entry into the smartphone market. Online store Amazon is believed to have a device in the pipeline, similarly building on the success of an earlier tablet line (Kindle Fire).