Peloton turns to Apple suppliers after failing to find a buyer

Peloton turns to Apple suppliers such as Quanta and Pegatron as it tries to change its business, BloombergMark Gorman reports.

Peloton will no longer produce its own bikes and windmills and rely solely on manufacturing partners in a desperate attempt to streamline its operations and cut costs, according to the report. Apple supplier Quanta has already provided touchscreens for the Peloton, but the company is now adding the Pegatron iPhone assembler to its supply chain to build its next rowing machine as it tries to reverse more efficient supply chain models.

Earlier this year, Peloton was looking for an investor like Apple to buy about 20 percent of the company in a bid to improve its fortunes amid waning demand for its products and fierce competition from services like Apple Fitness+. After months of dismal 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 treadmill, Apple was repeatedly cast as a potential buyer for the troubled fitness business at the start of this year. However, Apple has not shown any interest in acquiring a stake in Peloton.

Analyst Neil Cybart previously highlighted how Peloton is now being actively threatened by Apple Fitness+, not least because it’s much cheaper, costing up to $388.01 less per year for digital classes alone. Without major changes this year, Seibart warned, “Peloton is well on its way to becoming Fitbit 2.0 – a company unable to compete with the giants that support health and fitness tracking as an ecosystem advantage.”