New Orleans

Peloton to stop making its own bikes, treadmills – New Orleans, Louisiana

New Orleans, Louisiana 2022-07-12 13:08:04 –

Peloton is trying to revive its surge in sales during the pandemic, so it will discontinue production of its own interactive exercise bikes and treadmills and outsource these obligations to Taiwanese manufacturers.

The New York City company, which recorded the only profitable quarter during the pandemic, is trying to cut costs after Jim reopens and sales fall when cheaper knockoffs enter the market.

For the rest of the year, we will suspend manufacturing operations at the Tonic Fitness Technology plant in Taiwan.

Peloton’s strategy was to bring manufacturing in-house. We believed that strong sales would reduce costs and avoid shipping complexity. In 2020, sales growth doubled and production increased.

However, after making profits for three consecutive quarters in 2020, the peak of the pandemic, it began to lose money in the first quarter of 2021 and continues to do so.

Seeing Peloton’s success, other manufacturers intervened to build cheaper interactive bikes and treadmills, increasing inventory of unsold equipment at Peloton.

In February the company announced a major restructuring When Abandoned plan It opened its first US factory in Ohio and employed 2,000 people. Co-founder John Foley has resigned as CEO, and the company has announced a reduction of nearly 3,000 jobs.

The company reported Installation loss Sales in the last quarter have been stagnant. Also, the outlook for sales for the quarter is bleak, signing a promise to borrow hundreds of millions of dollars.

Peloton has been successful with digital apps that can be used on other devices. The company says it wants to focus on apps, not device sales. We’ve reduced the price of our equipment, but the price of our monthly subscriptions has increased by about 13%.

Rexon Industrial Corp., a Taiwanese manufacturer, manufactures its equipment as part of an expanding relationship.

Peloton Interactive Inc.’s share price rose 4.5% on Tuesday.

Peloton to stop making its own bikes, treadmills Source link Peloton to stop making its own bikes, treadmills

Back to top button