Peloton Interactive Inc. is gearing up to launch a cheaper treadmill and a new high-end bike, while lowering the price of its existing bike to stoke demand as many gyms remain closed, according to people familiar with the matter.
The new treadmill, called the Tread, will cost less than $ 3,000, compared to $ 4,295 for the current model. It will also be smaller and have a cheaper belt design like most other treadmills on the market compared to the slat design of the current model.
The new exercise bike will be a premium offering called Bike + and will likely cost more than the current $ 2,245 version. Peloton will then lower the price of the existing machine to less than $ 1,900, the people said. The shares fell nearly 4% to $ 79.05 in early trading in New York.
One of the new features on the cheaper, higher-end Tread bike will be a more adjustable tablet screen. This will help users to perform different workouts near the machine, not just on it, expanding the variety of classes. Peloton is also preparing bootcamp training classes for its bikes, which are strength training video workouts currently available on the Tread and Peloton mobile app, according to people familiar with the matter.
The New York-based fitness and tech company could announce the new products next week, ahead of quarterly results scheduled for Sept. 10, one of the people said. A spokeswoman for Peloton declined to comment.
The Covid-19 pandemic has driven demand for Peloton products and services as consumers seek new ways to exercise at home. Many gyms in the US remain closed, giving the company a unique opportunity to attract new customers and subscribers. The stock is up 178% this year.
However, the outbreak has also limited the company’s ability to produce new products and stopped deliveries of the tape in most US markets. In May, Peloton CEO John Foley said that Covid-19 forced the company to reconsider when to launch its products. He also noticed a significant backlog of future devices and said that finally launching a cheaper treadmill was a high priority.
The cheapest treadmill will likely go on sale later than the new Bike +, according to one of the people familiar with the matter.
