Peloton Turning to Apple Suppliers After Failing to Find a Buyer

Peloton is switching to Apple suppliers like Quanta and Pegatron as it attempts to turn its business around, Bloomberg's Mark Gurman reports.

peloton tv workout cardio
Peloton will no longer produce its bikes and treadmills at its own factories and rely solely on manufacturing partners in a desperate attempt to simplify its operations and reduce costs, according to the report. Apple supplier Quanta already provided touch screens to Peloton, but now the company is adding iPhone assembler Pegatron to its supply chain to build its upcoming rowing machine as it attempts to mirror more efficient supply chain models.

Earlier this year, Peloton was looking for an investor like Apple to buy around 20 percent of the company in an effort to improve its fortunes amid dwindling demand for its products and fierce competition from services like Apple Fitness+. Following months of bleak news about Peloton's "precarious state" as demand for the company's products dried up, including the revelation that it had temporarily halted production of its bikes and treadmills, Apple was repeatedly floated as a potential buyer of the troubled fitness business at the start of this year. Even so, Apple has shown no interest in acquiring a stake in Peloton.

Analyst Neil Cybart previously highlighted how Peloton is now actively threatened by Apple Fitness+, not least because it is considerably cheaper, costing up to $388.01 less annually for digital classes alone. Cybart cautioned that without major changes this year, "Peloton is on track to be a Fitbit 2.0 - a company unable to compete with the giants subsidizing health and fitness tracking as an ecosystem feature."

Top Rated Comments

StudioMacs Avatar
12 weeks ago

So what does that company even do then?
Charge a monthly subscription fee.
Score: 7 Votes (Like | Disagree)
GadgetBen Avatar
12 weeks ago
I have the bike and a tread. Quality equipment, which Apple don't have.

Their live classes are much more engaging, motivating and interactive than the prerecorded videos that Apple churn out. There are many global fitness groups now, and we coordinate and attend classes together. Peloton really are THE best global digital gym.
Score: 7 Votes (Like | Disagree)
archi penko Avatar
12 weeks ago
The most amazing part about peloton is the app. It changed my fitness life. I don’t care for and will probably never bother with any of the hardware. And you don’t need any of the hardware to use the app. I don’t want a tread or machine or any other. I prefer the outdoors.

The app, the instructors, the lessons, the variety, content is absolutely amazing. Far far better than Apple Fitness. Or any other competition.

$13 USD a month better than a Netflix subscription

Why they don’t double-down on advertising the app is beyond me. More users here will be like the iPhone is to the Apple ecosystem. Some users will convert & buy in.
Score: 6 Votes (Like | Disagree)
TonyC28 Avatar
12 weeks ago
"Peloton is on track to be a Fitbit 2.0 - a company unable to compete with the giants subsidizing health and fitness tracking as an ecosystem feature."

I’m not sure this is correct. Apple Fitness+ is a competitor to Peloton’s app but it’s not a matter of ecosystem as Apple isn’t producing fitness hardware. Peloton’s problem is they sell an expensive bike and to use that bike’s full features you need to pay a fairly steep monthly fee.
Score: 6 Votes (Like | Disagree)
Christoffee Avatar
12 weeks ago
Am I right in thinking that once Peloton stop supporting their machine they are useless? And now they are saying that they are struggling. Which means no one will buy their machines in case they go bust, so they will go bust.
Score: 6 Votes (Like | Disagree)
jmgregory1 Avatar
12 weeks ago

For those who have bought Peletons' pricey equipment, I hope they continue to see a value in the product.
I love my Peloton Bike. It’s helped me get physically fit (which has also significantly improved my mental state), on my schedule, without injury which is key given my age (55). For more than a year, I was riding 6 days a week, but this year with going back to the office for work, I’ve cut it down to every other day. It’s been a good value, compared to a gym membership, and my wife and kids (when they’re around) can ride it too, just for the cost of a pair of biking shoes. Peloton should absolutely be looking for production partners, following Apple’s lead in developing their own products and having other companies handle the manufacturing.
Score: 4 Votes (Like | Disagree)

Related Stories

peloton tv workout cardio

Peloton Looking for Investor Like Apple to Buy 20% of Company

Friday May 6, 2022 6:42 am PDT by
Peloton is looking for a major company like Apple or Amazon to buy a stake of around 20 percent in its business in an effort to improve the company's fortunes amid dwindling demand for its products and fierce competition from services like Apple Fitness+, according to a report from Bloomberg. Sources believed to be familiar with the matter speaking to Bloomberg's Mark Gurman and Ed Hammond...
ipad air 5 colors

Apple Reportedly Moving Some iPad Production From China to Vietnam

Wednesday June 1, 2022 5:04 am PDT by
Apple is shifting some iPad production from China to Vietnam for the first time, Nikkei Asia reports. Currently, the overwhelming majority of the iPad's supply chain is concentrated in China. Apple has been reported to be interested in moving at least some iPad production to Vietnam since January 2021, but supply chain issues over the past year are said to have delayed the move. Now, the...
iphone se 6

iPhone and MacBook Production Suspended in Key Locations Amid New Lockdowns

Tuesday April 12, 2022 2:32 am PDT by
Critical Apple suppliers who produce iPhones and MacBooks have suspended production in key locations amid new restrictions and lockdowns that threaten an already constrained supply chain, Nikkei Asia reports. Citing a stock exchange filing, Nikkei Asia reports that Pegatron, one of Apple's leading iPhone suppliers after Foxconn, has suspended iPhone production at its facilities in Shanghai...
Apple Store iPhone 14 Pro

Apple Nixes Plan to Boost iPhone 14 Series Production Due to Lower Demand

Tuesday September 27, 2022 11:56 pm PDT by
Apple is calling off plans to increase production of its latest iPhone 14 series after an anticipated surge in demand failed to materialize, Bloomberg reports, citing sources familiar with the matter. Apple has reportedly told suppliers to rein in efforts to increase iPhone 14 assembly by as much as 6 million units in the second half of the year. Apple had upgraded sales projections in the...
iPhone 14 Pros in Hand Black Background Feature

Apple Expected to Move 25% of All iPhone Production to India by 2025

Thursday September 22, 2022 2:36 am PDT by
Apple will move 25% of its entire iPhone production line to India by 2025 as it looks to diversify its supply chain, JP Morgan analysts said (via Reuters). Apple currently produces some iPhone models in India, including the iPhone 13 and soon the iPhone 14. Apple's supply chain remains highly concentrated in China, but the company has made efforts to move suppliers and production lines...
iPhone 14 Lineup Feature Black

iPhone 14 Reportedly Spotted in Indian Regulatory Filings

Tuesday August 23, 2022 4:25 am PDT by
A device believed to be the iPhone 14 has been spotted in the Bureau of Indian Standards (BIS), MySmartPrice reports. The device is filed under the model number "A2882," which is believed to correspond to one of the standard iPhone 14 models. The iPhone 13 has the model numbers A2482, A2631, A2634, A2635, and A2633, making this seemingly the first time that the iPhone has been officially...
iPhone 14 Lineup Feature Red

Major iPhone Supplier Planning Further Push Into India as Apple Looks to Diversify Supply Chain

Thursday August 4, 2022 6:43 am PDT by
Foxconn, Apple's largest supplier, is looking to further expand its presence in India with the opening of a new production facility within an existing factory in the country to produce the iPhone, The Economic Times reports. Foxconn is reportedly set to begin production in the new building in just a few months after ramping up hiring in the country in recent weeks, according to the report....
fitness plus iphone

Major Change Coming to Apple Fitness+ for iPhone Users

Thursday September 29, 2022 2:30 am PDT by
Apple recently announced that a major change is coming to Apple Fitness+ to accommodate people who do not own an Apple Watch. Since its launch, Apple Fitness+ has been dependent on an Apple Watch. Later this year, iPhone users will be able to subscribe to Apple Fitness+ in all 21 countries where the service is offered, even if they do not have an Apple Watch. The change will give iPhone...

Popular Stories

USB C Over Lightning Feature

EU Passes Law to Switch iPhone to USB-C by End of 2024

Tuesday October 4, 2022 3:30 am PDT by
The European Parliament today voted overwhelmingly in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The proposal, known as a directive, forces all consumer electronics manufacturers who sell their products in Europe to ensure that a wide range of devices feature a USB-C port. This...
General iOS 16 Feature Yellow

10 New iOS 16 Features Coming Later This Year

Monday October 3, 2022 2:41 pm PDT by
iOS 16 was released to the public three weeks ago with a customizable Lock Screen, the ability to edit iMessages, improvements to Focus modes, and much more. And in the coming months, iPhone and iPad users have even more new features to look forward to. We've rounded up 10 new features coming to the iPhone and iPad later this year, according to Apple. Many of the features are part of iOS...
ipad pro m1 feature

Gurman: Apple Event This October Remains Unlikely, No Touch ID for iPhone 15

Sunday October 2, 2022 6:41 am PDT by
Apple is developing new iPad Pro, Mac, and Apple TV models, and at least some of these products will be released in October, according to Bloomberg's Mark Gurman. However, Gurman continues to believe that Apple is unlikely to hold an event this month. In the latest edition of his Power On newsletter, Gurman said "the big iPhone 14 unveiling last month was probably it for Apple in 2022 in...
iOS 16

Apple Preparing iOS 16.0.3 With More Bug Fixes Following iPhone 14 Launch

Monday October 3, 2022 7:53 am PDT by
iOS 16.0.2 was released last month with several bug fixes for iPhone 14 issues, excessive copy and paste permission prompts, and more. Now, evidence suggests that Apple is planning to release iOS 16.0.3 with additional bug fixes. Evidence of an upcoming iOS 16.0.3 software update has shown up in MacRumors analytics logs, which have been a reliable indicator in the past. There are several...
Apple SIM Card

Apple SIM No Longer Available for Activating New Cellular Data Plans on iPads

Sunday October 2, 2022 8:04 am PDT by
As of October 1, Apple SIM is no longer available for activating new cellular data plans on supported iPad models, according to an Apple support document. Introduced in 2014, the Apple SIM was designed to allow iPad users to activate cellular data plans from multiple carriers around the world. Initially, the Apple SIM was a physical nano-SIM card, but it was embedded inside later iPad Pro...
maxresdefault

Video: AirPods Pro 2 vs. Bose QuietComfort II

Monday October 3, 2022 12:50 pm PDT by
Apple on September 23 officially launched the second-generation version of the AirPods Pro, introducing updated Active Noise Cancellation, Adaptive Transparency, improved sound, and more. Right around the same time, Bose introduced new QuietComfort II earbuds with many similar features, so we thought we'd compare the two to see which has the edge. Subscribe to the MacRumors YouTube channel for ...
General YouTube Feature 1

You May Soon Need to Be a YouTube Premium Subscriber to Watch 4K Videos

Monday October 3, 2022 4:29 am PDT by
YouTube may make watching videos in 4K quality on the platform exclusive to only YouTube Premium subscribers, according to screenshots posted by users on Twitter and Reddit. On Reddit (1,2) and Twitter, some users have started to recently notice that on iOS, and presumably across other platforms also, YouTube is now saying that in order to watch videos in 4K, the user must be a paying...
dynamic island alan dye

Apple Executives Talk About iPhone 14 Pro's Dynamic Island in New Interview

Sunday October 2, 2022 10:48 am PDT by
In a new interview, Apple's senior vice president of software engineering, Craig Federighi, and Apple's vice president of human interface design, Alan Dye, sat down to discuss the thinking behind the iPhone 14 Pro's Dynamic Island and how it was developed. During the interview with the Japanese magazine Axis, Federighi, who oversees the development of iOS, said Dynamic Island represents the...