They can't put a calculator app on the iPad but buying Peloton is a good idea? 🤦♂️
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Apple Could Acquire Peloton This Year, Fund Manager Forecast Suggests
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oof, get ready for some obsolete bikes every few years.![]()
Apple will likely acquire the fitness company Peloton this year, a new hedge fund manager forecast claims.
![peloton-tv-workout-cardio.jpeg]()
Deepwater Asset Management's annual forecast for 2024 (via Connect the Watts) says that Apple is likely to acquire Peloton sometime this year. The move would help Apple bolster its Fitness+ subscription service, adding workout equipment to compliment the Apple Watch and its existing activity tracking software. Absorbing Peloton's subscriber base of three-million users would ostensibly add about $1.7 billion to Apple's subscription revenue and line up with its continued investment in health and wellness, the company claims.
In 2022, Apple was repeatedly floated as a potential buyer of Peloton amid financial difficulties and threats to its business model, but the company's prospects have since improved somewhat and Deepwater Asset Management's new forecast is the first serious mention of the possibility in some time. Major questions remain about why Apple would want to take responsibility for Peloton's fragile business model and not simply focus on growing Fitness+, but anything is possible.
Deepwater Asset Management also believes that Apple will bring generative AI to Siri this year, introducing the revamped assistant at WWDC. The hedge fund manager is also not expecting Apple to announce any additional Vision Pro products this year.
Article Link: Apple Could Acquire Peloton This Year, Fund Manager Forecast Suggests
They really are a perfect fit for one another. Apple would have the cash and marketing prowess to grow the Peloton hardware market exponentially. The fact that Peloton is worth much less than it was just a year ago is a bonus. They’re a bargain to buy, but the value of their brand and turnkey hardware + subscription business is still there and easily co-opted by Apple. I hope they do it.
I’m curious, is that calculator app designed, created and implemented by the manufacturer of the Nintendo switch? Or is that a third-party calculator?
Have you ever gone to the home screen on iPad, swiped down and started entering a mathematical calculation?
Yes, Apple could do better. Acquire Peloton’s business and bring in Apple’s culture and sales formula to a market that Peleton proved exists but didn’t have the business chops to leverage. Apple’s formula has barely ever missed since the iPod.
1. Apple acquires Peloton‘s business
2. Merges Peloton classes with Apple Fitness+, inherits its producers and trainers, instantly improving Fitness+
3. Retains the Peloton brand for the hardware, Apple Fitness+ for the subscription
4. Leases Peloton bikes to major gym chains, now with full support for Apple Watch, with a CarPlay-like UI but for gym equipment.
5. Gets the Apple Fitness+ brand in gyms, solidifies the Apple Watch and Apple Fitness as the fitness brand.
Apple tried getting into gyms to help cement the Apple Watch in fitness culture but GymKit hasn’t taken off because Apple has no hardware to push the industry to follow it. Owning Peloton would change that.
2. Merges Peloton classes with Apple Fitness+, inherits its producers and trainers, instantly improving Fitness+
3. Retains the Peloton brand for the hardware, Apple Fitness+ for the subscription
4. Leases Peloton bikes to major gym chains, now with full support for Apple Watch, with a CarPlay-like UI but for gym equipment.
5. Gets the Apple Fitness+ brand in gyms, solidifies the Apple Watch and Apple Fitness as the fitness brand.
Apple tried getting into gyms to help cement the Apple Watch in fitness culture but GymKit hasn’t taken off because Apple has no hardware to push the industry to follow it. Owning Peloton would change that.
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I think the difference is that it's literally a stationary bike that can do only one thing and is not considered as much a necessity such as a phone or computer which have a ton of functions. And it seems like you absolutely have to have the subscription to get any benefit from the bike. Note this is coming from someone that hasn't ever owned a Pelaton bike so what I'm saying about the bike may not be 100% accurate.
Peloton’s model wouldn’t necessarily have to be Apple’s model. In fact, Peloton’s model has been failing so it almost certainly would be different if Apple does indeed acquire it.
Buy the bike, use it with your Apple Watch. Adds value to the Watch and the Watch to the bike. Fitness+ adds even more value to the bike, already included in Apple One, motivates others to upgrade to the top iCloud all-in-one tier, which meets Apple’s goals of sustainable recurring services revenue.
I think Apple can make this work. Peloton is a bargain at this point, Apple can easily afford it and justify the cost from its subscriber base alone, plus the leap it would give Fitness+ which has been growing but would instantly grow by millions of subscribers, getting Apple Fitness+ to its subscriber goal years earlier.
The bike functions as a stationary bike. It doesn't stop being able to be pedaled if you don't have a subscription hah.
Single or multiple function is irrelevant here. It's Tim Cook's dream to have every iPhone and Mac sold require a subscription. They aren't quite there, but with things like Apple Care and iCloud storage they are getting close. Like I said earlier, Apple's goal is to have subscriptions be a key part of every hardware purchase.
I'm guessing this Hedge Fund has stock in Peloton? Apple doesn't buy companies that are losing money year after year after year that nobody actually cares about. Looks like Peloton are getting desperate now. Nice try though 
How exactly? You can’t just fill every Apple Store with stock of bikes and treadmills.
They’re two completely different logistical paradigms.
I’m sure Apple could improve Peleton by virtue of their cash and resources, but it wouldn’t share anything with their process of selling 170 gram phones…
It is clear you don't understand the appeal of a Peloton (or similar) bike. It is way more than just a stationary bike with a video screen. It is a community and, for many, a way of life.
I own a similar a bike (Echelon) and it has become very important for my health, way more than anything else. It is more than just taking classes. It is about the community and the instructors. I did a 90 day ride at 7AM on New Year's Day? Why because of the instructor. If she can get up, why can't I? And, compared to the corporate and fake instructor that Fitness+ have, the instructor at Echelon come across as very genuine. They interact with you during rides (something Fitness+ can't do since they don't do Live rides). They share their stories and listen and share their customer stories as well.
There is a definite similarity to many Apple owners. You may not think it is necessity, compared to your iPhone, Computer, etc, but I can assure you that Peloton (and similar) users consider their bikes (and treadmills, mirrors, stairc climbers, etc.) a huge part of their life.
How many companies has Apple bought that was fundementally failing at their core business?
The magic 8 Ball says, "Not any."
How often do investment pros floated fake rumors of an Apple buy out to inflate a stock price before they plan to dump their shares?
The magic 8 Ball says, "Many."
The magic 8 Ball says, "Not any."
How often do investment pros floated fake rumors of an Apple buy out to inflate a stock price before they plan to dump their shares?
The magic 8 Ball says, "Many."
+1
I personally can’t stand AF at all. The classes are not motivating for me and are just too “perfect”.
I currently only subscribe to the Peloton app and I’m on a 2 week workout streak which is awesome and I feel motivated each day.
@TriBruin thinking of getting a bike as well. Which Echolon do you own?
I have the EX5s-22 that I bought 3 years ago. It looks for about $1700, looks the like the new version is for less than $1200 (https://echelonfit.com/products/echelon-connect-ex-5s-22-bike-for-bundles). When I bought it through Costco, I got a 1 year membership for free.