Wesley Hilliard
Peloton is hoping to lure in new customers by dropping the price of its original smart fitness bike to $1,495 — $400 cheaper than its original price tag.
The $400 price drop arrives after a worse than expected quarterly earnings result. Peloton, however, sees it as an opportunity to drive new user growth and more subscription revenue.
According to The Verge, Peloton grew less than expected and lost more than it had predicted. The company had a net loss of $313 million for its fiscal Q4.
This isn't the first price drop for the Bike. It originally cost $2,245 and was dropped to $1,895 in September 2020 after the Bike Plus launched.
Customers will still need the $40 per month subscription service to get the most out of the Bike. Subscription revenue is a big growth area for Peloton and it saw a 158.9% year-over-year growth in subscription gross profit.
The Peloton Bike is now $1,495 and can be purchased on the Peloton website.
The Peloton Bike doesn't have Apple Gym Kit integration, but users can still track basic cycling workouts via Apple Watch. The Peloton membership subscription is a direct competitor with Apple Fitness+, though Peloton welcomes the competition.
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8 Comments
Ha. Remember when Steve did that with the original iPhone? Apple dropped the price to "lure new customers" and those that bought at the original price were understandably outraged. Nice way to treat an early adopting, loyal customer.
Steve promised and made rebates. Wonder if Peloton will.
$400 might be the right price.
Looks like they don’t have a captive audience anymore. People can leave their house and use a regular bike now.
Still too expensive for a clothes rack/dust collector.