Shares of Peloton Interactive Inc PTON were under pressure after Apple Inc. AAPL announced the launch date of its fitness service.
What Happened: Apple's Fitness+, which the company first debuted in September, lets users watch and follow exercise routines on their Apple devices. Apple is charging $9.99 per month or $79.99 per year for its service.
By contrast, Peleton's similar exercise video subscription service starts at $12.99 a month for those without access to a Peloton-branded connected bike.
Apple is introducing unique features to its Fitness+ product that Peloton can't match, including integration with the Apple Watch to create a personalized experience.
Coinciding with the Fitness+ launch, Apple also introduced a new wireless over-ear headphone called AirPods Max at $549.
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"The custom acoustic design, combined with powerful H1 chips, and advanced software enable AirPods Max to use computational audio to wirelessly deliver the ultimate personal listening experience," said Greg Joswiak, Apple's senior vice president of Worldwide Marketing
Why It's Important: Peloton CEO John Foley previously argued Apple's entrance into the fitness space isn't much of a threat, CNBC reported in September.
"They're not coming into that [hardware] category," Foley said about Apple. "They're just going to be the content. And we think the special sauce, the magic, is our connected platform and in order to work out at home you need a stationary bike if you're going to be biking, you need a treadmill if you're going to be running."
What's Next: Apple's new Fitness+ service will go live on Dec. 14 while its new earphones can be ordered as of Tuesday with availability coming online on Dec. 15.
Peloton's stock traded around $115.81 at publication, paring some of its earlier morning losses.
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