Peloton cuts hardware prices & hikes subscription fees amid calls for sale to Apple
Peloton's new CEO is taking action to recover the company's finances, by cutting the price of its fitness equipment to clear inventory while at the same time hiking its subscription fees as shareholders again call for a sale to Apple.
Peloton
Starting June 1, the fitness company says it will raise the price of its North America All-Access membership from $39 to $44 in the U.S. and from $49 to $55 in Canada. International pricing is set to stay unchanged for the time being.
At the time time, Peloton is slashing the prices of its Bike, Bike+, and Tread hardware in a bid to grow its user base.
Going forward, Peloton's flagship Bike will cost $1,445, down from $1,745. The Bike+ will drop to $1,995, down from $2,495. Its Tread machine will sell for $2,695, down from $2,845.
Additionally, Peloton notes that it also has a rental program that it is testing in specific markets that allows users to get access to its fitness hardware with no c commitment. The rental program also includes its library of classes and workouts.
Peloton has been under pressure in recent months as demand for at-home workout equipment waned. Back in January, the firm said it would be temporairly halting production because of a "significant reduction" in worldwide demand. A month later, Peloton shook up its corporate structure by appointing a new CEO and laying out 2,800 staff members.
According to Peloton, the updated pricing announced Thursday is part of new CEO Barry McCarthy's "vision to grow our community as we continue to deliver for our Members and shareholders as the leading global connected fitness platform."
The new pricing strategy comes amid investor calls for Peloton to sell itself to Apple. On Thursday, activist investors at Blackwells Capital issued a call-to-action suggesting that Peloton selling itself is the "best course of action" for the company.
Blackwells Capital says that Apple is still the best bet for a buy, since it would instantly make Apple the category leader in digital health and wellness, add the ability to bundle Peloton with Apple Watch users, and prevent other companies from gaining a "trophy subscription fitness asset."
Although calls for Apple to buy Peloton have surfaced in the past, neither company appears particularly interested in such a deal. Amazon, however, was said to be eyeing Peloton earlier in 2022.
Read on AppleInsider
Peloton
Starting June 1, the fitness company says it will raise the price of its North America All-Access membership from $39 to $44 in the U.S. and from $49 to $55 in Canada. International pricing is set to stay unchanged for the time being.
At the time time, Peloton is slashing the prices of its Bike, Bike+, and Tread hardware in a bid to grow its user base.
Going forward, Peloton's flagship Bike will cost $1,445, down from $1,745. The Bike+ will drop to $1,995, down from $2,495. Its Tread machine will sell for $2,695, down from $2,845.
Additionally, Peloton notes that it also has a rental program that it is testing in specific markets that allows users to get access to its fitness hardware with no c commitment. The rental program also includes its library of classes and workouts.
Peloton has been under pressure in recent months as demand for at-home workout equipment waned. Back in January, the firm said it would be temporairly halting production because of a "significant reduction" in worldwide demand. A month later, Peloton shook up its corporate structure by appointing a new CEO and laying out 2,800 staff members.
According to Peloton, the updated pricing announced Thursday is part of new CEO Barry McCarthy's "vision to grow our community as we continue to deliver for our Members and shareholders as the leading global connected fitness platform."
The new pricing strategy comes amid investor calls for Peloton to sell itself to Apple. On Thursday, activist investors at Blackwells Capital issued a call-to-action suggesting that Peloton selling itself is the "best course of action" for the company.
Blackwells Capital says that Apple is still the best bet for a buy, since it would instantly make Apple the category leader in digital health and wellness, add the ability to bundle Peloton with Apple Watch users, and prevent other companies from gaining a "trophy subscription fitness asset."
Although calls for Apple to buy Peloton have surfaced in the past, neither company appears particularly interested in such a deal. Amazon, however, was said to be eyeing Peloton earlier in 2022.
Read on AppleInsider
Comments
These are the reasons Australia, the EU and the USA would reject approving the buyout. China would approve the buyout.
The sales pitch is comparing the monthly cost to the monthly membership fee of your gym, personal trainer, etc.
The rub is that for far less equipment cost & no monthly fee you can ride a bike to work everyday
of exercise bikes???
As if it didn’t already have enough it was trying to control.
Apple has GymKit, Apple Watch, Health, ResearchKit and Fitness in their ecosystem. It would be great if Apple acquired a gym equipment brand to expand their fitness and health sector.
Gymkit has an embarrassing market share and it’s frustrating trying to connect to crappy/broken/offline machines at the gym. Most gyms don’t give a F that your Apple Watch/iPhone can track your workouts. Heck, Planet Fitness has machines that are supposed to track your workouts with a 3rd party app but they keep the machines offline and these same machines have a “smartphone” holder that doesn’t fit anything larger than an iPhone 5s!!
Apple buying a gym hardware company could propel gyms and Apple’s ecosystem into the future.