According to Wedbush, Apple’s acquisition of Peloton might be a “huge strategic win,” boosting the company’s efforts in the health and fitness industry.
Consumer interest in bikes and treadmills has dwindled, and Peloton is now apparently a takeover target. Analysts have raised the possibility that Apple may be interested in purchasing the business, despite the fact that Amazon has received the most attention.
Wedbush analysts Daniel Ives and John Katsingris said in a letter to investors viewed by AppleInsider that Apple could easily purchase the fitness startup. Wedbush believes that Apple’s acquisition of Peloton “would be a big strategic coup and fuel the company’s aggressive health and fitness endeavours over the coming years.
The purchase of Peloton by Apple is both an aggressive and a defensive move, in our perspective, with 2.8 million paid subscribers and a very strong/unique competitive moat.”
On the other hand, an acquisition by either Amazon or Nike would provide that firm “a big foothold into the living rooms of customers worldwide,” with significant possibilities for cross-selling. Such an acquisition would be “a business model risk for its healthcare section and future undertakings,” according to Apple.
Peloton’s services and flywheel might be used by Apple to “substantially bulk out its healthcare operations,” a subject in which the company has long focused.
Wedbush points out that Apple doesn’t seem to be an obvious contender for purchasing Peloton, but it’s still feasible for the company to acquire the company. Even though Apple has over $200 billion in accessible cash, this seems like an excessive amount of money for the company to spend, even if the selling price is between $12 billion and $15 billion.
This unique asset fits well into Apple’s golden consumer environment, which makes us feel Cupertino might be a viable bidder for Peloton,” the analysts conclude. When Amazon, Nike, or Disney go after Peloton aggressively as a defensive blocking strategy, “Apple may be pushed into this transaction”
Wedbush presently has a $200 12-month price target for Apple, with a “Outperform” rating for the iPhone manufacturer.
Also read AMD RX 6950 XT GPU might peak above 2.5GHz out of the box
Peloton releases optical heart rate band
The long-rumored gadget is supposed to be worn on your forearm, making it a more comfortable alternative to the chest strap monitor.
Peloton on Monday announced its new Heart Rate Band, a heart rate monitoring gadget integrated with optical sensors meant to be worn on your forearm. The item is ready for purchase after speculations of the high-end exercise bike company getting into the wearables industry with an armband heart rate monitor had been swirling since late June.
The Heart Rate Band retails on Peloton’s website for $90, twice the price of the company’s previous chest strap heart rate monitor. The armband depends on optical sensors to assess your heart rate and the display contains five LED lights to show the heart rate zone you’re in throughout a workout.
It connects through Bluetooth across all Peloton devices, including the Peloton App, Bike, Bike+, Tread and the future Guide. You may also utilize it with third-party devices that accept standard Bluetooth Heart Rate Monitor profiles, according to Peloton’s news release.
The gadget is available in big and small sizes and is available today in the US, UK, Canada, Germany and Australia.
The material presented in this article is for educational and informative reasons only and is not meant as health or medical advise. Always visit a physician or other trained health expert about any inquiries you may have about a medical condition or health goals.