Wednesday, December 11, 2024
OpinionsRumors

I still don’t think that Apple will buy the financially struggling Peleton

The Sellers Research Group (that’s me) still says it ain’t gonna happen, but The Information predicted in January that Apple will buy the financially troubled Peloton.

And the rumors/speculation persists. Peloton is looking for a major company like Apple or Amazon to buy a stake of around 20% in its business in an effort to improve the company’s fortunes amid dwindling demand for its products and fierce competition from services like Apple Fitness+, according to a report from Bloomberg.

But back to The Information article that said the temporary suspension of Pelton’s bikes and treadmills “feels like the prelude to an acquisition of the troubled fitness equipment maker” and that “surely Apple must be the obvious buyer if it comes to that.”

Per The Information: If Peloton is to have a future, it would be better off as part of a bigger, more diversified company. Apple is an ideal candidate to take on that project. It has the Fitness+ subscription service for classes and it markets the Apple Watch as a device that can help with jogging and other exercise activities. It could close Peloton’s stores and sell the equipment through its own stores. And hey, after today, Peloton’s market capitalization is down to $7.9 billion. Cook could pay for that by dipping into the change jar in his kitchen.

Yes, Apple could certainly afford to buy Peleton. However, the company already makes computers, tablets, smartphones, smartwatches, smart speakers, accessories, and is apparently planning an AR/VR headset and an automobile. 

I think the last thing the company needs is to add bikes, treadmills, and other fitness equipment to its repertoire. The company is already in danger of trying to compete in two many categories.

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.