Cola brand PepsiCo is dipping its toe into the mobile phone market in China, with plans to launch Pepsi-branded Android handsets in the market.
The food and beverage company is working with a licensing partner to develop the Pepsi P1, a smartphone with a 1.7GHz processor, 16GB of storage and a 5.5-inch 1080p screen, the Washington Postsaid. The device is reportedly due to launch today.
The move is in line with PepsiCo's attempts to diversify its brand by striking deals with producers of products including high-end headphones and shoes.
But attempting to break into the smartphone market, which is dominated by Apple and Samsung, is a different matter entirely. China also has its own highly popular homegrown brands such as Xiaomi and Huawei to contend with.
PepsiCo has stressed it has no plans to enter the mobile phone manufacturing business directly, but that won't change the uphill struggle the company and its licensing partner is facing.
Previous attempts at branded handsets, such as HTC's Facebook branded phone, have largely failed to make a significant impact on the market.
PepsiCo's foray into the market nevertheless reflects the increasing influence of commoditization and mass market adoption on the smartphone market.