Gene Munster: Apple likely to buy Peloton this year

Peloton Bike
Longtime Apple analyst Gene Munster believes it’s likely that Apple will acquire Peloton in 2024. Apple will look to bolster their workout segment in 2024 by adding fitness equipment to complement the Watch and fitness tracking software, according to Munster. Peloton has a loyal subscriber base of about 3 million users that will add about $1.7B to Apple’s subscription revenue, Munster estimates. He believes an acquisition of Peloton by Apple fits well into Cupertino’s continued investment in health and wellness.
Ian Krietzberg
 for TheStreet:
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Deepwater Management’s Gene Munster expects this year to be a strong one for Apple, with the coming release of the Vision Pro headset, artificial intelligence upgrades on their way to the Siri virtual assistant, and what he expects to be at least one big-name acquisition: Peloton.
The stars, Munster said, are lining up for Apple to acquire Peloton, the connected exercise-and-fitness company whose stock has fallen hard from pandemic-era highs. In 2021 shares of Peloton were trading above $150; the stock at last check was up 1.7% at $6.23.
Peloton, Munster told CNBC, is a hardware, software and services company, a trifecta for which Apple has become well-known. And Apple, meanwhile, is working to expand its subscription revenue.
If the company is able to maintain Peloton’s roughly 3-million-strong user base, which brings in about $1.7 billion in revenue, Apple could add around 11% to its subscription piece, according to Munster.
“It was almost five years ago today that (Apple CEO) Tim Cook famously said that Apple’s greatest contribution to humanity will be related to health,” Munster said. “They’ve been teasing around Apple Watch; they have a fitness product that basically no one uses. And this is an opportunity.”

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MacDailyNews Take: Well, it’s not like we haven’t entertained the idea…
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. — MacDailyNews, January 21, 2022
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. — MacDailyNews, January 31, 2022
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