Peloton Slashing Hardware Prices But Increasing Subscription, Says Bloomberg
2022.04.14 22:26
By Sam Boughedda
Investing.com — Peloton Interactive (NASDAQ:PTON) stock rose, then fell Thursday afternoon following a report from Bloomberg that said the connected fitness company is cutting hardware prices but upping the cost of its subscription.
Bloomberg’s Mark Gurman said Peloton will be slashing the prices on three of its major hardware products.
Peloton’s original bike will be reduced by $300 to $1,195, with the Bike+ falling by $500 to $1,995. Meanwhile, its treadmill will be reduced to $2,345, taking $150 off the previous price.
The article quoted the company as saying they want more people to be able to afford their hardware, adding that it is a strategic decision to play for scale and increase market share.
Gurman added that Peloton will also reportedly increase its monthly subscription fee from $39 to $44 in the US and from $49 to $55 in Canada.
Peloton stock touched a high of $26.50 but is now down 5.3% to $23.70 at the time of writing.
