robvalentine
macrumors 6502a
instead of buying a peloton bike, I bought a real bike, and a smart bike trainer. and I can ride my bike outside. seems like a better deal.
Apple Floated as Potential Buyer of Peloton
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4jasontv
Suspended
Most companies respond when their product kills someone. Peleton made a product cheap and it was a safety hazard. Their cost-cutting led to deaths. This isn't posing a risk, it's actually injured and dead people in their homes using a product that wasn't designed properly. Those other companies don't make the same claims Peleton did. They make fun of people for being a doctor like Peleton did. They didn't ignore outcry from their customers about concerns like Peleton did.
TheOldChevy
macrumors 6502a
They bought Beat.
zhenya
macrumors 604
Like I said. I'm anti-stupid.
And while he factored in the decision I’m sure he wasn’t the winner he died as so the point is rather moot.
sw1tcher
macrumors 604
Still significantly larger than the market for "connected fitness" which is the category Peloton falls into.
Connected fitness is projected to be less than 1% of the market size for automobiles in 2027
Global Connected Gym Equipment Market to Reach $1.5 Billion by 2027 - ResearchAndMarkets.com
The "Connected Gym Equipment - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering. Amid the COVID-19 crisis, th...
www.businesswire.com
$1.5 billion vs $164 billion.
You really have no idea what you're talking about.
As for auto manufacturers who don't have EVs yet (a hybrid is not an EV as it still uses an ICE), they will or they'll die.
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4jasontv
Suspended
I mean, I see your point, but not only does the Thigh Master still sell great people are still paying $50 a unit in the face of sub-$10 Amazon clones. IDK why, but they are.
BornAgainMac
macrumors 604
I considered this product last year but eventually just got a generic mountain bike. Sorry to see them struggle, didn't expect that to happen.
TheOldChevy
macrumors 6502a
Don't you think that these customers already have one (or several) Apple Watch(s) ?
4jasontv
Suspended
I saw that comment. You made it right after claiming you had a product that kills kids and pets while having kids and pets. Your anti-stupid logic is that it is unfair that a knockoff product sold by a company that speaks poorly of their customers and whose product is known to cause injury and kill is being singled out against other more expensive products designed for commercial use and who have not had the issues directly tied to their product.
Still significantly larger than the market for "connected fitness" which is the category Peloton falls into.
Connected fitness is projected to be less than 1% of the market size for automobiles in 2027
Global Connected Gym Equipment Market to Reach $1.5 Billion by 2027 - ResearchAndMarkets.com
The "Connected Gym Equipment - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering. Amid the COVID-19 crisis, th...www.businesswire.com
$1.5 billion vs $164 billion.
You really have no idea what you're talking about.
I wasn’t the one that dropped a ”trillion” dollar label. If the argument is well, cars are more lucrative then spinner bikes, I don’t disagree. If the argument is well it’s not worth their time, well I can point you towards a dozen of their acquisitions in the last decade.
Money is money. I’m not saying they are going to buy them or not, or even if they should. But if it makes money sense it makes money sense…
suns93
macrumors regular
Based on the info that’s publicly available, I’d say there’s an extremely low chance Apple makes an offer.
It’s tempting to draw parallels to the Beats acquisition but I don’t think it should be viewed that way. Headphones/Music has been a part of iPhone since well, when it was the iPod.
If Peloton has some R&D ace in the hole they have been able to keep from shareholders, and Apple wants it, then I could see this going through.
Also keep in mind that Beats was turning a profit - in the wake of the Great Recession - whereas Peloton is losing money, and then more money, in what should be the perfect situation for their product. And Peloton would likely cost Apple at least 3 times as much as Beats did. So, at the very least Apple can drag their feet on this until they can get a more palatable price. Who else will “snatch up” Peloton at this current $9B valuation? Maybe Amazon?
It’s tempting to draw parallels to the Beats acquisition but I don’t think it should be viewed that way. Headphones/Music has been a part of iPhone since well, when it was the iPod.
If Peloton has some R&D ace in the hole they have been able to keep from shareholders, and Apple wants it, then I could see this going through.
Also keep in mind that Beats was turning a profit - in the wake of the Great Recession - whereas Peloton is losing money, and then more money, in what should be the perfect situation for their product. And Peloton would likely cost Apple at least 3 times as much as Beats did. So, at the very least Apple can drag their feet on this until they can get a more palatable price. Who else will “snatch up” Peloton at this current $9B valuation? Maybe Amazon?
Yes, one of my all time favorites.
iBluetooth
macrumors 6502a
Congrats, but get out before it drops again.
Checked out the Peloton when I bought my tread and decided on the Nordictrack x11i instead. Price was way better on the NT model when purchased and my wife and I found the iFit program to be superior to Peloton's workout programs. I can see why peloton is halting production as their pricing is a bit silly. Like iFit so much I bought an iFit powered rower (also a NT product).
As far as apple buying peloton... why not? They have the $$ and with the Apple name attached a lot of people that probably wouldn't have bought a tread now will just because it's apple.
As far as apple buying peloton... why not? They have the $$ and with the Apple name attached a lot of people that probably wouldn't have bought a tread now will just because it's apple.
If it’s anyone it’ll be Amazon.
When I first saw the Peloton Tread it looked like a total copy of the Woodway. The big difference is most people can't afford a Woodway at $8000-$10000. If Woodway was sued no one would have cared.It's not a design flaw which is why they initially resisted the recall. Other companies have been using the same design for decades. If Peloton was not a target, why have other manufacturers, using the same design, not been included in the recall?
zhenya
macrumors 604
I also think there is a low chance, and even as an Apple and Peloton user, don't think it's necessarily desirable.
Two things - one, Peloton is only un-profitable now because they got hit with an extremely costly recall right as they took on debt to expand production. Their core business of selling equipment that continues to produce a monthly revenue stream is profitable. Two, it's that last bit that makes Peloton attractive where Beats was not. Beats did not provide an immediate non-hardware revenue stream. Apple bought beats for access to a market that they found desirable.
yeah sure you have.....
cjbryce
macrumors 6502a
Don't really disagree with either point and if Apple were interested in getting into the fitness machine sector, the Peloton market share and brand would be a major consideration. Apple might even consider keeping the Peloton brand as they did with Beats. I know Peloton is popular in the US and they spent a shedload recently on TV adverts in the UK, but I have no clue as to their market penetration/brand recognition elsewhere.
But I did say, "ramp up advertising" as part of my option two. I think the Apple Board when considering $7.9Bn investment along these lines might feel there's enough cash there to acquire market share in a (sort of) new to them market area - Apple already has a pretty sound brand recognition factor
and if they were to combine that with another globally recognised "hardware" brand they already work closely with (Nike) then...Also, is the Peloton brand perhaps now slightly tainted? (It's rhetorical, I simply don't know) - as well as the negative financial press they've been getting I thought they'd recently had to withdraw one of their machines as it was dangerous? So, if Apple bought Peloton would they want to keep the brand at all? I haven't a clue?♂️.
Frankly, it could go either way or none - Apple might take one look at the market and the potential and decide it's not for them.?♂️
sw1tcher
macrumors 604
Peloton's only had 1 profitable quarter. And that was due to a huge pull forward in demand thanks to the Covid pandemic. Since that 1 quarter, they've continued to bleed red ink.
Apple would be buying a company with $1.5 billion in debt. Would Peloton help grow Fitness+ subscriptions? ?♂️ Apple won't even say if those and other subscription services (News+, TV+, etc) are even profitable or provide investors with subscriber numbers.
Companies buy other companies with debt literally all the time. In fact…debt is often the reason said companies go up for sale\are open to a sale in the first place.
It’s really 101 stuff…..