Why is Pepsi building a phone?
Quick, name the first smartphone brands that come to mind.
Most people would mention Apple, Samsung, HTC, LG or Sony. If you’re more familiar with the industry, you might add Lenovo, Xiaomi, and/or Huawei to the above list. You’re very unlikely to mention Pepsi, however.
Yet a recent leak indicates that the beverage manufacturer will indeed release an Android phone. According to Sina.com, seemingly the source of those leaks, the phone is to be called the Pepsi P1. The device will feature a 5,5-inch screen with 1080p resolution, a 1,7GHz processor and 2GB of RAM. The rest of the technical specifications include: 16GB of storage, 3000mAh of battery capacity, and a 13 megapixel main camera along with a 5 megapixel front-facing one. The phone is expected to retail for CNY 1.299 – approximately € 180. Pepsi will reportedly announce the device on October 20th, and it appears to be a China exclusive.
Pepsi is not the first unexpected company to get involved in selling smartphones: Facebook attempted it in 2013 with the HTC First, and Kodak has released the IM5 this summer. The former was a dramatic flop with only 15.000 units sold across the US. There are no sales results available for the latter but it’s not likely to have done well, with only 4 stores in the Netherlands still stocking it.
But at least Facebook and Kodak had somewhat sensible reasons to try their hand at smartphones. For Facebook, the phone was intended to promote their ill-fated Android homescreen replacement. Kodak counted on their brand recognition amongst the older crowd, targeting consumers that are shopping for their first smartphone.
Pepsi’s core business however, has nothing to do with consumer technology. It’s entirely unclear why they would enter the highly competitive Chinese smartphone market, what value they could add, or who their target customers would be. A spokesman told the Daily Mail that “Pepsi has always moved at the speed of culture, and today technology is a key cultural pillar at the heart of consumer interaction”, which doesn’t seem to actually mean anything. Do you know of a better reason for Pepsi to release a phone? Feel free to let us know in the comments.