Cari Gundee rides her Peloton exercise bike at her home on April 6, 2020 in San Anselmo, California. More people are turning to Peloton because of orders on the spot, because of the coronavirus (COVID-19).
Ezra Shaw | Getty Images
Peloton shares fell more than 4.5% in premium trading on Thursday on a report that Apple is working on a subscription service for digital fitness classes.
Shares recovered the losses after the markets opened.
Apple plans to offer virtual workouts through an app for the iPhone, iPad and Apple TV, Bloomberg reported Thursday. Apple’s move is part of a broader effort to launch new subscription plans that bundle several of its services, including Apple News +, Apple Arcade, Apple Music and others.
Apple declined to comment on the Bloomberg report.
It is a direct threat to both Peloton and Nike, which offers the virtual training app called Nike Training Club. It’s also one example that highlights Apple’s potential anti-competitive behavior. Developers have complained that Apple emulates its software and then introduces it as new features in iPhones and other products.
A Peloton spokesman did not immediately respond to a request for comment.
Cowen analysts wrote Thursday morning in a note that Apple’s potential app is not likely to threaten Peloton’s lead in the fitness space, “seeing its vertically integrated platform & very passionate, growing user base across Bike, Tread, and expected add’l hardware offerings. ”
Peloton, which has seen increased demand in its home spin bikes and treadmills due to the pandemic, has also reported growing involvement. The app is available to everyone, regardless of whether they buy equipment or not.
The company reported in its third quarter 2020 revenue that it ended the quarter with 176,600 payments from Digital Members, up 64% year-on-year.
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