Apple’s new Fitness+ service could add an extra $3B annually to its annual coffers by 2022

Apple Fitness+ vs others

Apple’s new Fitness+ service is expected to be launched before this year’s end. It is possible that we may hear more information about this at tomorrow’s iPhone event.

According to a new research note and an accompanying upgrade from RBC capital, the new fitness service from Apple could add in an extra $3B annual revenue to the company’s top line.


The brokerage said it expects the service to benefit from pandemic-related at-home spending trends. “Assuming a 20% adoption from Watch customers, which we view as reasonable, we estimate a ~$3B annual revenue opportunity by 2022,” said the brokerage.

RBC Capital raised its price target on Apple to $132 from $111 as they view the company’s upcoming Fitness+ subscription service as a worthwhile competitor within the Health and Wellness category.

Peloton, whose stock has soared more than 190% this year has had a significant head start in Fitness over Apple.

According to research from Raymond James, nearly half of fitness-minded adults are likely to cancel their gym memberships, with 90% of users responding that their interest in connected fitness is likely to stay the same or increase following the easing of Covid-19 restrictions.

This provides an excellent tailwind for Apple’s Fitness+ program launch this year.

Fitness for everyone. Anywhere you want. Anytime you want

Apple’s Fitness+ workouts are designed to work in spaces like your living room, your hotel room, the park, or the gym. It’s easy to turn any place into a state-of-the-art studio.

Apple’s Fitness+ service incorporates health data tracking integration with Apple Watch, Apple Music tie-ups for class playlists, and provides the ability to participate in classes from a variety of Apple devices.

The pricing on the Fitness+ service is also attractive when compared with Peloton’s offering. Apple’s Fitness+ monthly subscription will be available for $9.99 compared to $12.99 membership from Peloton.

Other service offerings from established tech companies such as Amazon Halo’s monthly $3.99 or offerings from new entrants such as Zwift are poised to make this niche more competitive moving forward.

Are you planning to subscribe to the new Fitness+ service offering when it is released this year? or will you continue with your existing fitness workouts. We would love to hear from you.

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Sudz Niel Kar
I am a technologist with years of experience with Apple and wearOS products, have a BS in Computer Science and an MBA specializing in emerging tech, and owned the popular site AppleToolBox. In my day job, I advise Fortune 500 companies with their digital transformation strategies and also consult with numerous digital health startups in an advisory capacity. I'm VERY interested in exploring the digital health and fitness-tech evolution and keeping a close eye on patents, FDA approvals, strategic partnerships, and developments happening in the wearables and digital health sector. When I'm not writing or presenting, I run with my Apple Watch Ultra or Samsung Galaxy Watch and closely monitor my HRV and other recovery metrics.


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