With Apple announcing Fitness + during Peloton’s first investor meeting, Peloton’s CEO was immediately questioned about entering the same business.
Apple announced a streaming fitness program for Apple Watch wearers, at September’s “Time Flies” event. The service seeks to combine the health-tracking capabilities of the Apple Watch with instructor-guided workouts.
The move has made Apple a direct rival to the peloton, another company known for making high-end workout equipment – treadmills and stationary bikes – and their pairing with streaming fitness content.
The announcement came in the midst of Pelton’s first investor meeting as a public company. As a result, Peloton’s shares sank slightly, but rose about 4% just before publication.
“We’re digesting the announcement just like everyone else,” Peloton CEO John Foley told CNBC “The biggest thing I would say is that this is quite a legalization of fitness stuff, the biggest company of the word, a $ 2 trillion company, coming in and saying fitness stuff. It’s quite worthwhile for Apple . “
He suggested that the peloton continue to differentiate itself by providing equipment that Apple does not.
“They are not coming in [hardware] Category, “Foley said of Apple.” They are just going to be content. And we think that special sauce, magic, is our connected platform and to work at home you need a stable bike, if you’re going to ride a bike, you need a treadmill if you’re going to run Huh. “
The peloton’s equipment is targeted towards a different audience segment – those willing to spend thousands of dollars as they see fit. The cheapest peloton bikes cost $ 1,895, while their peloton trade + starts at $ 4,295. The peloton also offers two different membership options. The $ 13 tier allows a single user to take peloton fitness classes and does not require any peloton equipment. A $ 40 tier requires a peloton bike, bike + or tread +, and it gives a full family access to health metrics, guided workouts, and more.
In contrast, the minimum requirement to use an Apple Watch Series 3, Fitness + costs $ 199. Fitness + membership will be $ 9.99 at launch and will include five family members.
Recently, Peloton announced a new Peloton Bike +, which would easily pair with Apple Watch via GymKit.