The Sellers Research Group (that’s me) says it ain’t gonna happen, but The Information predicts that Apple will buy the financially troubled Peloton.
Yesterday CNBC reported that Peloton is temporarily halting production of its connected fitness products as consumer demand wanes and the company looks to control costs. The article says that the company said in a confidential presentation dated Jan. 10 that demand for its connected fitness equipment has faced a “significant reduction” around the world due to shoppers’ price sensitivity and amplified competitor activity.
The Information says the temporary suspension of its 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, IMHO, of trying to compete in two many categories.
This past January marked three key product anniversaries for Apple: 40 years since the launch…
Apple wants the iPhone and Apple Watch to offer better, more secure, emergency response data.
EaseUS Fixo is an all-intone file repair toolkit. Thanks to a new Apple World Today…
A newly granted Apple patent involves viewing, interacting with extended reality scenes using a Vision…
Here's how to measure a rectangle with the Measure app in iOS and iPadOS.
Since I can’t cover everything, here are some recommended articles you should check out: °…