Tesco has got the rumour mill spinning with word of its own-brand tablet due out in time for Christmas.

The Sunday Times has reported that Tesco plans to release an affordable tablet, much like the Kindle Fire HD, to compete with Amazon, Google and Apple's iPad.

At the moment Tesco is losing sales of DVDs and books to its online tech-savvy competitors and needs to enter the already busy tablet market to win them back.

If the price range is similar to Amazon, as The Sunday Times speculates, we can expect a £130 device with specs similar to the Kindle Fire HD. But on top of offering its own books, movies and shows, Tesco's tablet will come with apps for online grocery shopping, Tesco banking and its streaming service, Blinkbox. Great for those looking to catch up on Game of Thrones.

A cheap price would make sense for Tesco, which is entering a tough market, with the likes of Google's Nexus 7 and Apple's iPad mini 2 and Kindle's new higher specced Fire HD also likely to be arriving in Santa's sack.

Undercutting everybody, perhaps by offering lower specs and making money on content sales, seems like the logical move. But whether it's a move Tesco can afford in the long run remains to be seen.

UPDATE: The Guardian, citing industry sources, claims the Tesco tablet will be under the brand name Hudl and be 7-inches.