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.
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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.
