The UK supermarket chain, Tesco, has announced December 14th as the date when it will start selling Apple’s popular phone. O2 lost it’s exclusivity on the iphone a few months ago and since then Orange has started selling the handset, and Vodafone have announced it will be available in early 2010.

As you would expect with Tesco’s they aim to undercut the competition. They are offering 12 month iphone contracts from £20 – their competitors are only offering 18 or 24 month phone contracts. With this contract, the handset price will be £222 for an iPhone 3G 8GB. They are also offering the 3G and 3GS on their tripple credit pay as you go price plan.

It will be interesting to see if there is a price war on the iphone. It will also be interesting to see how many more phones will be sold, now that the O2 exclusivity has ended. There were 1 million handsets in the UK in Feb 09, and approximately 1.5m in Dec 09. Watch this blog for more updates!