Peloton Interactive (PTON) pulled back on news of a $500 Amazon bike.
In fact, Echelon said in a press release that it built a Prime-branded bike and Amazon partnered with the startup to build Amazon’s “first-ever connected fitness product,” as noted by CNN.
However, that release has now been removed. And Amazon has said the bike is not an Amazon product or related to Amazon prime. “”Echelon does not have a formal partnership with Amazon. We are working with Echelon to clarify this in its communications, stop the sale of the product, and change the product branding,” an Amazon spokesperson said.
In short, someone screwed up – big. And no one is quite sure what happened here.
This isn’t the first time PTON has come under pressure from potential competition.
Back in August 2020, there was news Apple could be offering a virtual workout app for the iPhone, iPad, an Apple TV, as noted by Bloomberg. It could potentially be a part of Apple’s effort to launch new subscription plans to bundle several services, including Apple News, Apple Arcade, Apple Music, etc. However, as noted by CNBC, Cowen analysts noted, “Apple’s potential app isn’t likely to threaten Peloton’s leadership in the fitness space, ‘given its vertically integrated platform & highly passionate, growing user base across Bike, Tread, and expected additional hardware offerings.’”
Despite all of the chaos, the PTON stock continues to push higher on strength.
In its most recent earnings report, EPS came in at 27 cents, as compared to expectations for 10 cents. Sales came in at $607.1 million, as compared to estimates for $582.5 million.
And, according to CNBC, “Peloton said it ended the quarter with more than 1.09 million connected fitness subscribers, up 113% from a year earlier, and roughly 3.1 million members in total, including those who only pay for its digital subscription. Connected fitness subscribers are people who pay $39 per month to sync workout classes to their Peloton equipment, versus accessing the programs separately through a phone or tablet device and paying just $12.99. Its gross margins grew to 47.6%.”