Should Peloton Investors Worry About Apple's New Fitness Service?
Apple (NASDAQ: AAPL) recently unveiled Apple Fitness+ as the latest addition to its suite of subscription services. Demand for interactive fitness services is booming, as evidenced by Peloton Interactive's (NASDAQ: PTON) explosive growth over the last year. With a large installed base of active devices, Apple could gain traction quickly in this market. Should Peloton investors be concerned?
Peloton still makes most of its money from selling exercise equipment. Subscription revenue made up 20% of its top line in fiscal 2020 (which ended June 30). This amount includes the $39 per month fee that users pay to access workout programs on their Peloton Bike or Tread. It also includes the $12.99 per month fee members pay to access workout programs through the Peloton digital app.
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Source Fool.com
