as much as I never saw the fad of peloton as more than a social media flaunt, it somewhat makes sense. Peloton has nearly 6 million users with paid subscriptions. Those are potentially more people for apple to use for their subscription service to get people into their eco system. The users already have the hardware, so what are you going to do? Stop exercising because you have a Samsung Phone? No, you’ll pay foe the service you already were paying for Or sell the equipment you have.
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Apple Could Acquire Peloton This Year, Fund Manager Forecast Suggests
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As a Peloton user (but not owner) I bet if Apple bought them and just took their instructors (and along with that, some of their formatting) they'd probably add a big chunk to Fitness+. If you look at any Peloton forums, the users aren't talking about the bikes, they're all talking about the classes and their favorite instructors.
What's the largest/heaviest thing Apple have ever shipped? Because I assume even that isn't comparable to shipping treadmills and exercise bikes to consumers.
Add 3 million subscribers and $1.7 billion to Apple's subscription revenue while also resulting in an annual net loss of over $1 billion for Apple.
Peloton's net loss for fiscal year* 2023 was $1.262 billion. Their net loss for fiscal year* 2022 was $2.828 billion. Even during the height of the pandemic when everyone was stuck at home and buying all sorts of useless junk, Peloton managed to post a net loss of $189 million for fiscal year* 2021 and a net loss of $72 million for fiscal year* 2020.
* Peloton's fiscal year ends June 30
I see it happening but just to kill off HW Side or spin that side off they buy it for the instructors and classes
I've never understood the Peloton model. Charge more than anyone else for hardware and then charge a high monthly fee. I was paying $12.99 for the app and using my own treadmill. If you bought from Peloton you were paying $45 a month. You'd think they would incentivize purchasing the hardware with cheaper subscriptions. They did double the price of the app this year for non-hardware owners but you're still paying almost double if you own a Peloton. Doubling the app price with no added value just pissed off all of the app users. They do a lot of questionable stuff for something that seems like it would be a pretty straightforward company to run.
I love my Peloton equipment a lot but especially the instructors. If Apple or anyone else buys them, I hope they don’t make too many changes. I like the explicit playlists and that everything isn’t sanitized. I didn’t enjoy Apple Fitness as much when I tried it.
Insanely expensive... 🤣
Peloton Bike is on sale for $1,145 (regular price is $1,445). Meanwhile, the Appe Pro Stand is $999 and the Apple Mac Pro wheels are $699.
Once upon a time, there was a legenday investor/fund manager. His name was Peter Lynch, who ran the Magellan Fund for Fidelity Investments. It was the largest mutual fund in the world, and under his stewardship, the fund outperformed the S&P 500 index every single year, over 10 years. Net of expenses, no less!
He wrote a book called "One Up On Wall Street," which should be the equivalent of a bible for any investor, large of small. In it, he coined a term for companies trying to grow earnings through acquisitions, particularly of companies outside their core competencies. Apple buying Peloton would be a perfect example.
He called it, "diWORSEification."
He wrote a book called "One Up On Wall Street," which should be the equivalent of a bible for any investor, large of small. In it, he coined a term for companies trying to grow earnings through acquisitions, particularly of companies outside their core competencies. Apple buying Peloton would be a perfect example.
He called it, "diWORSEification."
I agree that the Peloton equipment is expensive, but they have tried (and been failing big time recently) to position themselves as a premium product in the marketplace, just like Apple. One could argue iPhones and Macbooks are expensive compared to their Android/Microsoft counterparts, then almost every user of them pays for Apple Music/Apple One/some other sort of subscription.
Not trying to be a jerk by saying this, but this is 100% false. I have a Peloton bike and a tread in my house that both my wife and I use. We only pay for 1 subscription and there are multiple times that she's on the tread and I'm on the bike.
Furthermore, Peloton inked a deal with Hilton so now almost every Hilton hotel has a bike and I can log into my account on that bike to ride (not tied to the piece of hardware at my house).
Enjoy 'Maxing' your Apple Card!Hoping for interest-free bike purchasing using the apple card
Feel free to take a look at my reply to that comment. You can use 1 subscription on multiple pieces of hardware, even if you don't own it.
Even large-scale deployments back when Apple sold xServe racks probably isn't close given volumes are comparatively low to consumer products like Peloton bikes and threadmills, in terms of logistics it sounds to me like a totally different ball game.
As Peloton changes to become a more viable business, they are sure to upset many of their existing customers. Services will change and go away. Old hardware will be abandoned, or re-monetized.
Apple would be wise to avoid angering existing Peloton customers, and the easiest way to do so would be to stay far, far away.
The only thing Apple could do that is a benefit to Apple is to buy a slice of Peloton's business. I don't think Peloton investors would be very happy about that.
Apple would be wise to avoid angering existing Peloton customers, and the easiest way to do so would be to stay far, far away.
The only thing Apple could do that is a benefit to Apple is to buy a slice of Peloton's business. I don't think Peloton investors would be very happy about that.
Not sure if this would be a deal-breaker when it comes to an acquisition, but all of the Peloton screens run on Android. My understanding is that Apple Fitness+ only works on devices.