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Apple Floated as Potential Buyer of Peloton

Chet-NYC said:
If Apple were to buy Peloton, the only part of the business that has any value are the digital workouts.
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That was my thought on this. Adding some experienced instructors to an expanding Apple Fitness program would seem to be the goal. I can't imagine Apple would have any interest in getting into the hardware side of this business, but who knows what's talked about in the back rooms in Cupertino.
 
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awdodson24 said:
I was skeptical about Peloton... but they had a great Black Friday deal this past November and my wife has enjoyed it when she used a friend's Peloton. So, I bought one. And it's actually really nice. The workouts/instructors are really good and the hardware of the bike hasn't been a problem at all.

I also owe a rowing machine and enjoy doing the Apple Fitness+ rowing workouts with Josh. I also do the core workouts and occasional yoga workouts on that platform.

Let's say Apple does buy Peloton (which I don't think they will): Can they connect my Apple Watch to it through a software update to give us access to Health Kit? We didn't get Bike+, which comes with Health Kit access. Can they work Apple Fitness into the Android platform (probably)? Does Apple keep the Peloton name? Lots of questions.

Also, the instructors on Peloton have developed their own brands over the years and command big money. There was an article recently citing that all of these instructors now make more money off social media and have agents to work their contracts with Peloton and other sponsors. Apple would definitely have enough money to pay them if they knew it would bring in more subscribers.
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Just an FYI, there is a workaround for those who have an Apple Watch and the standard Peloton Bike, which I’ve been using for the past 16 months. Get the BlueHeart app (for iPhone and Watch). One time purchase, developed by a Peloton user, that allows you to use the Watch to connect to the Bike and track your heart rate, calories, etc. It used to be a bit flakey, but he’s worked the bugs out over time. It actually shows up in the Fitness app as Peleton Indoor Cycle rides. I don’t think I’d like the Peloton as much as I do if it weren’t for the connectivity with the Watch, Health and Fitness apps.
 
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It's a very US-centric business model. The USA is a great and large market - but that business model won't work anywhere else, certainly not in Asia, where you could get a personal trainer come to your house every day for a lower cost than the price of Peleton...

In Europe people are more likely to buy sneakers and go running in the forest, or biking as it were, more nature oriented - hard to imagine anyone paying huge sums for a home training equipment / program like that. Yes, there's always some who will pay for this but I think a way lower number than in the USA. I am from Europe that's not how we think there, and I lived in the USA, 1500 US is nothing for the typical overstressed silicon valley wage slave... or (any big city) wage slave. The sentiment in Europe would be use that cash and go into nature... and in Asia the sentiment would be "WTF are you thinking I am getting a massage for $5 now... and having my training session with a triple champ muay thai boxer later for $10"
 
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Are there really any assets worth it to Apple?

The videos won’t integrate with the Fitness+ videos.

The instructors can just be bought over with higher pay.

Fitness+ hardware is currently supplied by Nike, which I don’t see the relationship ending anytime soon.
 
Peloton were doing good in my opinion until it all went down hill when a parent let their child get too close to one of it's treadmills and it got caught up in the treadmill. The aftermath of that event occuring had been a social media backlash of people wanting to find things wrong with Peloton which resulted in orders being cancelled and bad reviews of it's products. There is no way Peloton was going to survive and they haven't.
 
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jlchereau said:
Why would Apple want to sell bikes and treadmills? That is low margin and expensive to support. They are much better off partnering.
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Bring Apples logistics and supply chain management into play, and I wonder if a $2k bike (with recurring service revenue - something Apple is chasing right now) is still low margin? Tack on $500 for Apple Care, and there is probably some pretty health margins here with the right management.
 
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Spanky Deluxe said:
Has Apple *ever* bought a failing company before? They tend to only invest in stuff that is already doing well.
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Not sure about failing company but they do purchase the companies back to back a lot. I think the majority of the target goal is to buy smaller companies since there is a low level so risk involve.

www.bbc.com

Apple buys a company every three to four weeks

The technology giant has bought around 100 companies in six years, chief executive Tim Cook has revealed.
www.bbc.com www.bbc.com
 
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Peloton is expensive, but I bought one when I calculated that I was spending far more than the cost of their bike on trudging to the local 'spin palace', and suffering the insipid 'coaches' there. I went 3 to 4 times a week. Sure, I could have ridden outside, but the nearest trail requires a half hour car ride. How much sense does that make?

I love the Peloton, and their onscreen talent makes the ride engaging and enjoyable. There are people with over 3,000 rides on their bikes. The biggest issue I see for Peloton is the cost of that talent. I keep hearing that the best talent they have get low 6 figure salaries. I find that figure unbelievable but could believe they make high 5 figures. And they have added a whole bunch of new instructor/coaches. There are new names popping up all the time it seems. AND they have multiple flagship stores and workout salons that are not getting used due to Covid.

So, is the problem cost? Sure, but the biggest problem with the Peloton Business Plan is Covid. People flocked to their Homecoming week events. Getting a bike in their NYC salon was hard to come by at top times in the week. They all but killed Soul Cycle, and many other alternatives.

Couch potatoes are never going to get the feelings of endorphins coursing through their body. The rush of getting a new personal record, or finishing a hard session in the top 100/50/25/10. The thrill of getting a shout out from the coach. The thrill of making a pilgrimage to the Peloton Mothership.

Peloton has a very dedicated group that very much love the whole experience, and it has changed many people's lives for the better. It will be a sad day if Peloton closes down. Hopefully they can trim talent and lower their payables and get back on track, or Apple, or some other cult buyer will take them in, and support the millions of fans and devoted people riding their bikes everyday. (Peloton started out as a Kickstarter, and some still have those first bikes)
 
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awdodson24 said:
Let's say Apple does buy Peloton (which I don't think they will): Can they connect my Apple Watch to it through a software update to give us access to Health Kit? We didn't get Bike+, which comes with Health Kit access. Can they work Apple Fitness into the Android platform (probably)? Does Apple keep the Peloton name? Lots of questions.

Also, the instructors on Peloton have developed their own brands over the years and command big money. There was an article recently citing that all of these instructors now make more money off social media and have agents to work their contracts with Peloton and other sponsors. Apple would definitely have enough money to pay them if they knew it would bring in more subscribers.
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You already know the answer to your question, because the Android-based Bike+ includes GymKit and can be seamlessly connected to the Apple Watch. The non-plus Bike lacks the necessary hardware, but it easily could be added to a v.2 of the Bike.
 
I don't understand why Apple would do this; Peloton's business model clearly does not work (this has been proven). It's not like Apple should buy any high end product business out there, whether it makes business sense or not... just because it is a "high end brand".
 
The problem with Peloton was Covid surge in sales. They thought that this was going to be their future. But it was really just eating into future sales. Plus they totally handled the treadmill thing wrong. They should have seen this dip in sales coming and planned for it. Since the spike in sales was not natural during 2020.
 
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ELman said:
Have fun with that at 5AM in the dark when the temperature is -10F
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Right? The Peloton bike isn’t a replacement for riding outside. I’ve got several friends who are into doing long, 50-100 mile rides on the road bikes, but it’s nothing like the cardio workout you get on a spin bike. Outside, you have to slow down for traffic, stop at stop signs and lights, and watch for people, animals, pot holes, not to mention dealing with the weather and light conditions as you note.

I get on my Peloton and within 10 minutes I’ve got my heart rate up to ~80%+ of my max, and can keep it there or hit max heart rate for 30-60 minutes straight. And when I do get outside for rides, I can go for hours and never be winded.

Obviously this same thing can be done with non-Peloton spin bikes, but I like the camaraderie it encourages.
 
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If Apple purchases them while demand is down, Apple will be stuck with a bunch of legacy equipment to support. It will take a huge investment in redesign to get Peleton products up Apple standard. Tim Cook won't look at this.
 
BF1M said:
Secondary question, do they even support GymKit? I’m not sure I’ve ever seen a single piece of exercise equipment in the wild that does.
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I could be wrong but I believe one of their bikes does and one doesn’t, and I’m not sure about the treadmill. They disabled GymKit on their workouts that were a combination of cycling and weights which angered some people, not sure if that was ever resolved.

I’m definitely the exception, but the building we bought an apartment has a gigantic gym and 90% of the electronic equipment has GymKit, but I have also never seen GymKit outside of our building.
 
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I bought a brand new carbon fiber road bike (Cannondale Synapse 105) and Kreitler rollers for less than the cost of a Peloton bike. (You just need to buy a model that's at least a year old but still brand new, which isn't especially difficult.) Anyway given this, imho buying a Peloton makes zero sense. Especially since their products kill children. It would be a horrible decision for Apple to buy this company.
 
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