{"id":5238,"date":"2022-01-21T19:41:08","date_gmt":"2022-01-21T19:41:08","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/21\/apple-poised-pelotons-saviour-among-news-the-company-is-pausing-equipment-production\/"},"modified":"2022-01-21T19:41:08","modified_gmt":"2022-01-21T19:41:08","slug":"apple-poised-pelotons-saviour-among-news-the-company-is-pausing-equipment-production","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/21\/apple-poised-pelotons-saviour-among-news-the-company-is-pausing-equipment-production\/","title":{"rendered":"Apple poised Peloton’s saviour among news the company is pausing equipment production"},"content":{"rendered":"

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A recent report from\u00a0CNBC<\/a><\/em> regarding Peloton\u2019s manufacturing rate helped plummet the company\u2019s stock by 24 percent in a single day.<\/p>\n

The media outlet reports the exercise bike manufacturer has temporarily halted production of its fitness products because of a drop in consumer demand.<\/p>\n

Internal documents revealed bike productions will pause in February and March. Production of Bike+ was halted back in December and won\u2019t resume until June. The Tread treadmill won\u2019t start manufacturing again for six weeks until February. Further, production of Tread+ was previously halted and likely won\u2019t resume this year.<\/p>\n

This fueled ongoing rumours surrounding the fitness company\u2019s production problems, with Insider<\/a><\/em> reporting Peloton will lay off 41 percent of its staff in its sales and marketing departments.<\/p>\n

Once noted as the darling of connected exercise equipment, the company is now struggling. CNBC<\/a><\/em> says that Peloton overestimated how many people would buy its products after a jump in sales tied to at-home workouts during the pandemic.<\/p>\n

Now experts are saying the only way to save the Peloton is if tech giant Apple purchases it. Financial advice publication, The Motley Fool<\/em>,<\/a> reports Apple has the cash to spare and \u201cwants to be a force in health and wellness.\u201d However, the article also notes a possible acquisition would \u201cbenefit Peloton far more than it would Apple,\u201d given the fitness company\u2019s smaller \u201cmarket opportunity.\u201d<\/p>\n

Peloton CEO John Foley has denied that production is slowing or halted and says media reports are \u201cincomplete and out of context.\u201d<\/p>\n

\u201cRumors that we are halting all production of bikes and Treads are false,\u201d Foley wrote in a letter of response<\/a>.<\/p>\n

However, he did acknowledge layoffs may soon be on the horizon.<\/p>\n

\u201cWe now need to evaluate our [organizational] structure and size of our team, with the utmost care and compassion. And we are still in the process of considering all options as part of our efforts to make our business more flexible,\u201d he wrote.<\/p>\n

Image credit: Shutterstock<\/em><\/p>\n

Sources: CNBC<\/a><\/em>, Insider<\/a><\/em>, The Motley Fool<\/a><\/p>\n<\/p><\/div>\n