Following the announcement of Apple Fitness+, Peloton shares fell but managed to recover. Nevertheless, PTON fell over 6% in the last five days despite climbing more than 200% in 2020. 

Shares of Peloton Interactive Inc (NASDAQ: PTON) dropped following the launch of a new fitness subscription service by Apple Inc (NASDAQ: AAPL). Called Apple Fitness+, the new service is positioned to rival Peloton with its cheaper monthly subscription fee, among other features.

On Tuesday, Apple announced a variety of new products at its launch event. Some of the newly launched products are a new iPad Air, the Apple Watch Series 6, and the eighth generation iPad. 

In addition, the company is launching a new subscription service called Apple Fitness+. According to Apple, the service will arrive later in the year.

Peloton Shares Dropped as Apple Unveils Fitness+

In the announcement, the company revealed that the new service would offer different workouts led by virtual trainers. Powered by the Apple Watch, the Fitness+ will launch in the US, the UK, New Zealand, Canada, Ireland, and Australia.

Earlier this month, there was news that Peloton is planning to release a new bike and a cheaper treadmill. Already, the American exercise equipment and media company has two subscription options for its virtual fitness lessons. Owners of the Peloton hardware are charged $39 per month and users of the Peloton app pay $12.99 monthly.

Since the beginning of the year, Peloton stock has surged over 200%. This results from the increase in customers’ demand during the stay-home period caused by the pandemic. However, shares of the company fell following Apple’s announcement of its Fitness+. Despite recent increases over the past year, PTON has declined over 6% in the last five days.

Also, the subscription for the new Apple Fitness+ services will cost cheaper than Peloton’s. Apple said Fitness+ would cost $9.99 monthly or $79.99 per year.

More on Apple Fitness+

As noted in the press release, Apple Fitness+ will integrate the features of the new Apple Watch. Users will have access to the service on iPhones, iPads, or an Apple TV that sync to the Apple Watch. Another feature Apple plans to add to the Watch is a blood oxygen monitor.

In addition, the new service will allow users to select the kind of exercises they would prefer. Available options will include yoga, core exercises, treadmill workouts, cycling, and more. Also, users will have the option to choose their preferred trainer, music, and workout duration.

Furthermore, Fitness+ has a feature called Absolute Beginner. The new feature will provide basic workouts movements for first-timers and prepare them for the advanced level.

Apple announced the new products and subscription service at the same time Peloton was holding its first meeting for investors.

Peloton CEO John Foley commented:

“The biggest thing I will say is it’s quite a legitimization of fitness content, to the extent the big company in the worth, a $2 trillion company, is coming in and saying fitness content matters. It’s meaningful enough for Apple.”

At the moment, Apple has not announced a release date for its Fitness+ service. Currently, trading at a premarket price of $116.40, AAPL is up 0.74% over its previous close of $115.54.

PTON stock is 0.18% up in the pre-market today, trading at $85.60.

Business News, Market News, News, Stocks, Wall Street

Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *