UK supermarket giant Tesco is gearing up to possibly start off an iPhone pricing battle as they begin selling the iPhone next week which includes a £20 per month option although the iPhone handset will also cost the customer.

However if you want to nab yourself one of those Tesco 12 month contracts for £20 per month you will be required to shell out 222 quid for an 8GB iPhone 3G, which is of course isn’t the latest version of the iconic iPhone.

Other Tesco prices are, for the 16GB iPhone 3GS will set you back £320, the 32GB iPhone 3GS will dip into your wallet to the tune of £407, and prices rise substantially if you opt for the pay as you go route.

I guess the big question here is will people purchase the iPhone from Tesco rather than the rivals, but there is another thing to also consider, early next year Vodafone is also potentially to offer the iPhone, so will they come in undercutting Tesco pricing?

At the moment it looks like Tesco has a good deal going with that 12 month option, so will you be buying the Apple iPhone from Tesco?