Peloton Interactive (PTON) - Get Report is reportedly preparing to launch a cheaper treadmill and a new high-end bike, while slashing the price of its existing bike to boost demand as many gyms remained shuttered due to the coronavirus pandemic.
Bloomberg reported that the new treadmill, called Tread, will cost less than $3,000, compared with $4,295 for the current model.
Tread will also be smaller and have a cheaper belt design like most other treadmills on the market compared with the current model’s slat design, Bloomberg said, citing people familiar with the matter who asked not to be identified.
The existing Peloton treadmill will continue to be sold as the company’s high-end offering and will be renamed the “Tread+”.
The new stationary bike will be a premium offering called Bike+, and will likely cost more than the current $2,245 version. Peloton will then drop the price of the existing machine to less than $1,900.
One of the new features of the cheaper Tread and higher-end bike will be a more adjustable tablet screen, which will help users do different workouts near the machine, not just on it, and expand the variety of classes.
Peloton is also preparing bootcamp training classes for its bikes, Bloomberg said, which are strength training video workouts currently available on the Tread and the Peloton mobile app,
Peloton could announce the new products as early as next week, ahead of quarterly results scheduled for Sept. 10. Peloton did not immediately respond to a request for comment.
The coronavirus pandemic dramatically increased demand for Peloton's products and services, but it has also limited the company’s ability to produce new products and has paused deliveries of the treadmill in most U.S. markets.
CEO John Foley said in May that the outbreak has forced the company to rethink its product launch timing.
Earlier this week JP Morgan analyst Doug Anmuth raised his price target for the company to a Wall Street high $105 from $58, saying he saw "significant upside potential" to analysts' consensus earnings estimates, both near and long term.
Shares of Peloton were down 7.39% at $76.20 in trading on Friday.