Peloton CEO John Foley said Tuesday that Apple launching a fitness platform is a “legitimization” of this type of content.
Foley’s remarks were made during the bike maker’s first-ever investor meeting as a public company, and coincided with Apple‘s splashy unveiling of the fitness platform, which will allow users to access a catalog of workout videos on iPhones, iPads, or on an Apple TV that sync to an Apple Watch.
Peloton shares dipped slightly on the news and recently were up about 4%.
“We’re just digesting the announcement like everybody,” Foley said. “The biggest thing I will say is it’s quite a legitimization of fitness content, to the extent the biggest company in the word, a $2 trillion company, is coming in and saying fitness content matters. It’s meaningful enough for Apple.”
However, he said, Peloton separates itself from Apple with its high-tech spin bikes and treadmills, which Apple isn’t planning to offer customers.
“They’re not coming into that [hardware] category,” Foley said about Apple. “They’re just going to be the content. And we think the special sauce, the magic, is our connected platforms and in order to work out at home you need a stationary bike if you’re going to be biking, you need a treadmill if you’re going to be running.”
Meantime, Peloton has outlined its plans to grow to 100 million subscribers. To get there, the company plans to expand outside of the U.S., launch new products and make sure its gear is affordable.
Peloton shares are up more than 200% this year.