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Gurman: No, Apple probably won’t buy Peloton

Monday January 31, 2022. 10:39 PM , from Mac Daily News
On Thursday, CNBC reported that Peloton has temporarily halted production of its bikes and treadmills in what feels like the prelude to an acquisition of the troubled fitness equipment maker. The Information‘‘s Martin Peers last week wrote that if Peloton is acquired, “Apple must be the obvious buyer.”
Bloomberg News‘ Mark Gurman begs to differ.
Fitness+ subscribers can now use SharePlay to start a group workout or meditation with their friends and family to keep each other motivated or share in some friendly competition.
Mark Gurman for Bloomberg News:

Apple probably won’t buy Peloton despite some on Wall Street pushing for that marriage… The reality is that buying Peloton would be an unnecessary and pricey headache for Apple.
On the hardware side, I don’t see Apple getting into fitness equipment for the same reason it didn’t get into full TV sets half a decade ago. Stationary bikes and treadmills are expensive to make (low margins), hard to distribute (heavy and costly to ship), and have upgrade cycles that don’t align with Apple’s other products.
Apple also doesn’t need Peloton’s technology. It has its own software in the form of the Fitness+ service, and touch-screen devices like the iPad… The catalog of workouts you can find at Fitness+, which works with the Apple Watch, has grown over the past year. While it’s still nowhere near Peloton’s portfolio of content, it would be cheaper for Apple to invest more in creating its own material than to make a Peloton deal.
But what about buying the company for its financials or user base? Those don’t add up to a deal either.

MacDailyNews Take: The only people who think Apple buying (read: rescuing) Peloton are hapless Peloton investors. Peloton has nothing to offer that Apple can’t do better if they so desire.
That said, as we wrote earlier this month:
If Apple were to buy Peloton, it wouldn’t be for bikes or treadmills… If Apple were to buy Peloton, it would be for Peloton’s 2.49 million connected fitness subscribers.
Meaning: If Apple acquired Peloton, they’d do so with the intention of sunsetting it and moving the Peloton subscriber base to Apple Fitness+ with Apple Watches, iPhones, iPads, and Apple TVs.
It’s just a matter of math: How much Apple figures each Peloton subscriber is worth if they move to Apple Fitness+ (plus hardware purchases that recur over time) and how many of those 2.49 million do they believe they can convert.
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The post Gurman: No, Apple probably won’t buy Peloton appeared first on MacDailyNews.
https://macdailynews.com/2022/01/31/gurman-no-apple-probably-wont-buy-peloton/
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