Apple Fitness+ Vs. Peloton: How Do They Stack Up?

Apple Inc. AAPL launched its Apple Fitness+ in mid-December. It allows users to work out anytime anywhere, a welcome proposition at a time when staying at home is preferred during the COVID-19 pandemic. 

An analyst at Rosenblatt Securities said that awareness of the new offering — though growing — trails the rival offering by Peloton Interactive Inc PTON.

Home Fitness Here To Stay: A workout at home is preferred by a majority, with most suggesting they will continue to maintain or increase this routine post the pandemic, analyst Bernie McTernan said in a note, citing the results of Rosenblatt's third Streaming Fitness survey.

About 45% of the respondents said they use a streaming home fitness service, the analyst said, adding that 23% of the respondents use a free service, 14% use Apple Fitness+, 10% rely on Peloton and 15% use a paid service other than those of Apple and Peloton.

Peloton Tops Apple In Awareness: Awareness of Apple Fitness+ stood at 52% of the respondents compared to a relatively stable 68% for Peloton, McTernan said.

Awareness about Apple Fitness+ is higher among respondents with an Apple Watch at 76% compared to 41% for those without, the analyst said. 

Despite Apple Fitness+ being offered as a free service to Apple Watch owners for a month and for new Apple Watch buyers for three months, only less than one-quarter of those with an Apple Watch are trying Apple Fitness, he said. 

Related Link: Good Fit': Street Reacts To Peloton's $420M Precor Acquisition

Peloton's Low Penetration An Opportunity: Given Peloton's product quality and focus on affordability, the low penetration of its streaming fitness service could be an opportunity, McTernan said.

Peloton's moat is its content, with the company releasing 130 workouts over the last week relative to 24 by Apple Fitness+, adding to its considerable library lead, the analyst said. 

"On affordability, while we are focused on the launch of the value tread in February/March in the U.S., we also see an opportunity for a certified pre-owned market," he said. 

McTernan has a Buy rating and $186 price target for Peloton shares.

AAPL, PTON Price Action: At last check, Apple shares were moving down 2.66% at $127.53 and Peloton shares were slipping 3.53% to $143.28. 

Related Link: Peloton CEO Says Apple Fitness+ Legitimizes Exercise Market

Photo courtesy of Peloton.