Peloton Now in Trouble Thanks to Apple Fitness+

Peloton's business model is in peril due to the growth of Apple Fitness+ and a clash of interests in the digital health space, according to analyst Neil Cybart.

Apple fitness plus feature
In a thread on Twitter, Cybart explained that despite rapid expansion in recent years, Peloton is now "in a precarious state." As a business, Peloton has high customer acquisition costs, translating to high product pricing. The company recently reduced the price of its entry-level bike by almost 20 percent to $1,495, in an attempt to drive up sales through the end of 2021. Despite this, "interest in Peloton is declining," Cybart explained, and the company's state is indicated by its decreased number of workouts and poor guidance.

The analyst went on to diagnose Peloton's core issue: Peloton essentially wants to become a digital health platform in the long term, leading it to clash with Apple, which already has a strong foothold in the consumer health market with the Apple Watch and HealthKit.

There is also a clear rivalry between Peloton's digital classes and Apple Fitness+. Notwithstanding the high-entry cost of Peloton equipment compared to Apple Fitness+'s equipment-lite approach, Peloton's classes are markedly more expensive than Apple Fitness+. When paid monthly, Peloton is $3 more expensive than Fitness+ $12.99 per month, and paid yearly, Peloton is $75.89 more expensive.

Apple Fitness+ can also be used by up to six people for no added cost and has family-friendly content, while Peloton Digital only works for one person and is rated for adults only, pushing up the cost for a Peloton All-Access Subscription to create separate profiles, working out to $388.01 more than Fitness+ when paid annually. Apple Fitness+ is also available as part of the ‌Apple One‌ Premier bundle for $29.95 per month, making it essentially free for heavy users of Apple's other services.

Despite being somewhat reliant on Apple, leveraging the Apple TV and GymKit, Peloton has also had a contentious business relationship with Apple as it struggles to navigate digital platforms it does not control.

Cybart used Google Trends data to show that Peloton has failed to generate enthusiasm to gain additional users, worsened by what is believed to be a disappointing 2021 holiday season for the company. He believes that without a major change in 2022, "Peloton is on track to be a Fitbit 2.0 - a company unable to compete with the giants subsidizing health and fitness tracking as an ecosystem feature."

Related Stories

peloton tv workout cardio

Apple Floated as Potential Buyer of Peloton

Friday January 21, 2022 6:11 am PST by
Following months of bleak news about Peloton's "precarious state," including the revelation that it has halted production of its bikes and treadmills, Apple is being floated as a potential buyer of Peloton's troubled fitness business. Yesterday, CNBC reported that Peloton will temporarily stop production of its connected fitness products due to a "significant reduction" in consumer demand, a ...
apple fitness workout

Apple Fitness+ Turns One Year Old

Wednesday December 15, 2021 9:48 am PST by
Apple Fitness+, Apple's paid fitness subscription service, officially turned one year old this week. The service was announced in September 2020 and launched on December 14, 2020. Fitness+ was initially only available to customers in Australia, Canada, Ireland, New Zealand, the UK, and the US, but last month Apple expanded the service to many more countries. Apple Fitness+ is centered...
fitness plus

UnitedHealthcare Offering Insured Members Free Year of Apple Fitness+

Friday September 24, 2021 3:55 am PDT by
Health insurance provider UnitedHealthcare has announced that a 12-month subscription to Apple Fitness+ will be provided to its fully insured members at no extra cost. Starting November 1, members who already own an Apple Watch will be able to sign up for a yearlong Apple Fitness+ subscription for free. According to UnitedHealthcare, this covers about 3 million of its members across most...
Apple fitness plus feature

Apple Fitness+ Starts Rolling Out in 15 Additional Countries

Wednesday November 3, 2021 8:42 am PDT by
Apple Fitness+, Apple's subscription-based fitness service, is now rolling out in 15 new countries, including Austria, Brazil, Colombia, France, Germany, Indonesia, Italy, Malaysia, Mexico, Portugal, Russia, Saudi Arabia, Spain, Switzerland, and the United Arab Emirates. Priced at $9.99 per month, or available as part of the Apple One Premier bundle that has also expanded to new countries,...
apple fitness plus shareplay

Apple Fitness+ Users Can Now Work Out With Friends and Family Using SharePlay

Monday October 25, 2021 10:01 am PDT by
SharePlay, a new feature that's been introduced in iOS 15.1, iPadOS 15.1, macOS Monterey, watchOS 8.1, and tvOS 15.1, is compatible with Apple Fitness+ and adds a fun new feature to Apple's fitness service - working out with friends. Using SharePlay, Apple Fitness+ users can work out with friends and family members over FaceTime. Apple says that this is a good way to help people "stay...
apple fitness workout

Apple Fitness+ Launching in 15 New Countries on November 3

Monday October 25, 2021 9:57 am PDT by
Last month, Apple announced that its subscription-based Fitness+ workout service would be launching in 15 additional countries "later this year," and today, the company confirmed the launch will take place on November 3. Apple Fitness+ launched in December 2020 in the United States, the United Kingdom, Australia, Canada, Ireland, and New Zealand. Less than a year later, on November 3, Apple...
Apple fitness plus winter update collections yoga

Apple Announces Fitness+ Workout Collections and Time to Run [Updated]

Friday January 7, 2022 6:05 am PST by
Apple today announced Collections and Time to Run for Apple Fitness+, as well as expanded Time to Walk and Artist Spotlight suites. Collections are curated series of workouts and meditations from the Fitness+ library, providing users with a new way to get motivated, remain consistent, and make progress with their sessions. Fitness+ Collections include a suggested plan to help users make...
peloton logo

Peloton Says Apple's Privacy Rules Limit Its Ability to Gain Subscribers

Friday November 5, 2021 3:57 am PDT by
Peloton has become the latest company to blame Apple's ad-related privacy changes in iOS for negatively impacting its business, according to a new report by Bloomberg's Mark Gurman. Best known for its at-home exercise equipment and online fitness classes, Peloton blamed the App Tracking Transparency (ATT) rules Apple introduced in iOS 14.5 for making it more difficult to add new...

Popular Stories

Upcoming Products 2022 Feature

Gurman: Apple Preparing 'Widest Array of New Hardware Products in Its History' for Fall

Sunday January 23, 2022 10:32 am PST by
Apple is working on a number of new products that are set to launch this fall, and Bloomberg's Mark Gurman says that it will be "the widest array" of new devices that Apple has introduced in its history. In his latest "Power On" newsletter, Gurman explains that Apple is working on four new flagship iPhones (iPhone 14, iPhone 14 Max, iPhone 14 Pro, and iPhone 14 Pro Max), an updated low-end Ma...
Questionable Design Decisions

Apple's Most Questionable Design Decisions in Recent Memory

Sunday January 23, 2022 2:59 am PST by
Apple has always emphasized the depth of thought that goes into the design of its products. In the foreword to Designed by Apple in California, a photo book released by the company in 2016, Jony Ive explains how Apple strives "to define objects that appear effortless" and "so simple, coherent and inevitable that there could be no rational alternative." But every once in a while even Apple...
macbook pro 14 16 2021

Three Months After Launch, Apple Still Struggling to Meet Demand for Redesigned 14-Inch and 16-Inch MacBook Pro

Monday January 24, 2022 7:12 am PST by
Three months after their launch, the 14-inch and 16-inch MacBook Pros continue to experience high demand and seemingly short supply, with shipping dates for both models stretching into multiple weeks in several of Apple's key markets. In the United States, the baseline 14-inch MacBook Pro with the M1 Pro chip is estimated to ship in three to four weeks, promising an arrival by at least...
att gigabit internet

AT&T Bringing $180/Month 5-Gigabit Internet to 70 Cities

Monday January 24, 2022 9:20 am PST by
AT&T today announced the launch of upgraded AT&T Fiber plans, which support speeds of up to 5 Gigabits for some customers. There are two separate plans, one "2 GIG" plan and one "5 GIG" plan, available to new and existing AT&T Fiber subscribers. According to AT&T, the new plans are available to nearly 5.2 million customers across 70 metro areas including Los Angeles, Atlanta, Chicago, San...
airpodsinear 1

AirPods Save Woman's Life With Feature Everyone Should Know

Friday January 21, 2022 2:13 am PST by
Apple's AirPods have been credited with saving a woman's life after a potentially fatal fall, People reports. When a 60-year-old florist in New Jersey tripped and hit her head in her studio, she lost consciousness and awoke heavily bleeding. With nobody around to call for help, she realized she had her AirPods in, and used a "Hey Siri" command to call 911. An operator was able to stay on the ...
AirPods Pro Gen 3 Mock Feature ugly yellow

AirPods Pro 2 Could Beat AirPods Max Sound Quality

Monday January 24, 2022 2:15 am PST by
Apple's second-generation AirPods Pro could deliver higher fidelity audio than the AirPods Max over-ear headphones, despite being comparatively small in-ear buds, recent reports have suggested. In a recent note to investors, seen by MacRumors, TF International Securities analyst Ming-Chi Kuo claimed that the second-generation AirPods Pro will offer improved audio quality thanks to support...
iCloud General Feature

Developers Unhappy With Bug Causing iCloud Unreliability

Monday January 24, 2022 10:15 am PST by
A number of developers are upset with an increasingly problematic iCloud server issue that is causing some apps that have implemented iCloud support to fail to sync properly. As outlined on the Developer Forums and on Twitter, there are CloudKit connectivity issues that have been occurring since November. Some users of apps that have iCloud support built in are seeing the following message:...
top stories 2022jan22

Top Stories: Spring Apple Event Rumors, Apple Opposes Sideloading, and More

Saturday January 22, 2022 6:00 am PST by
As we roll into the latter half of January, we're starting to hear more about a potential spring Apple event, which is likely to take place in March or April. There are a number of potential announcements on deck, so an event would be a good opportunity for Apple to get them all out there. We've also been going back and forth on some iPhone 14 rumors, and we've taken a look at a number of...