Peloton Stock Dips After Apple Gets Patent for Fitness App

Peloton saw its shares fall Tuesday (Nov. 2) possibly because of Apple’s new design patent for a fitness app, Seeking Alpha reported.

The company’s shares have fallen almost 20% since September, when Apple debuted new Apple Fitness+ features, according to the report.

The design has several workouts including HIIT, yoga, core and more, the report stated. There’s also a specific trainer leading the workouts, which is similar to Peloton’s classes.

Apple rolled out Apple Fitness+ in December for a price of $9.99 per month, according to the report. It was initially only available in the U.S. and five other countries. On Wednesday (Nov. 3), the service will expand to 15 new countries.

Meanwhile, Peloton debuted a B2B platform in September to allow hospitality customers to buy connected fitness equipment and its other products online in a bid to expand beyond home services.

Read more: Peloton Launches B2B Platform for Hospitality Industry

The company had seen a glut of demand with the pandemic as customers had to stay inside. Now, Peloton is looking to branch out, with Chief Business Officer Brad Olson saying it’s “really a B2B play.” He added that the move comes after the purchase of Precor, which gave Peloton more manufacture capacity in the U.S.

“We’ve been selling Peloton bikes into hotels and resorts for years. … But this is really the culmination and one of the big elements of the deal rationale of why we purchased Precor,” he said.

Peloton has plans to work with hotels to offer exercise equipment like cycles in rooms, which could boost awareness of the company overall.

Peloton had a 75% boost in workouts year over year. The company was able to reach 134.3 million users, averaging 19.9 monthly workouts per connected fitness subscription.

The company’s fourth quarter earnings showed its subscriptions were up 114%, hitting 2.33 million. There was also a 176% increase in digital subscriptions and total membership growth to more than 5.9 million.