Peloton announced a long-awaited product refresh of both its bike and treadmill. Yahoo Finance’s Brian Sozzi has tested the new Bike+, and breaks down the details.
ALEXIS CHRISTOFOROUS: It looks like Peloton is taking a page out of Apple's playbook. The company just announced a long-awaited product refresh and a price cut for its original bike, also a new cheaper version of its treadmill. My co-host Brian Sozzi has been testing this new Peloton bike out for a couple weeks now. So, Brian, I guess let's just get to your review first. What do you think about this-- this new treadmill and the bike?
BRIAN SOZZI: Well, full and fair disclosure, I just passed my one-year mark as a Peloton user. So I just wanted to get that out of there. So that's how I approached this.
I like-- it has a new screen that [? folds ?] to the side, larger screen. I think that'll help Peloton. [? Also, ?] [? we ?] attract a lot more fitness instructors. At least that's what I'm hearing from a lot of my sources on Wall Street. That is a good thing.
Also helps you transition from the bike to more workouts, mat-based workouts. That's also good. Price point for this new bike, $2,495.
But overall, I do like what the company has done here. They are-- they are [? tiering ?] their products very much like Apple, I think, in an attempt to expand their subscriber base. Yes, there might be some disappointment here on the street because they didn't come out with a new punching bag that detects how many kicks you put to it. But overall, it's very apparent that Peloton is more focused on growing its subscriber base right now, as everyone's working from home, rather than dumping another piece of new hardware on the market that nobody might use.
ALEXIS CHRISTOFOROUS: What's the price cut like for that original bike? And I have to tell you, if I was one of the first people to buy this thing at-- at full retail, I'd be a little upset right now. Is-- is Peloton doing anything for those customers?
BRIAN SOZZI: Yeah. And somewhat like Apple, they're-- they are giving a $700 credit. So me as a bike owner, I get a $700 credit. And I could put that towards a new bike. The new bike, again, goes for $2,500.
They will come, pick up your old bike, and drop off the new bike, and hook you up with some accessories overall. But also lost in the sauce here too, Alexis, a new treadmill priced at about $2,495. Unclear how they lopped off close to $2,000 from the treadmill. A couple different components, I'm hearing. But, again, another way, potentially, to get more people into that Peloton universe.