is reportedly pulling the brakes and production as demand for home gym equipment is waning.
It is said to be suspending production of its standard Bike and Tread (treadmill) products for two months and six weeks respectively. The company stopped making Bike+ units last month and does not intend to resume production of this more expensive model until June, reports. As for the Tread+, Peloton reportedly doesn’t expect to build any more in its 2022 fiscal year.
According CNBC, Peloton said in an internal presentation that there has been a significant drop in demand due to consumer “price sensitivity” and increase. Additionally, gyms are open again in many regions following the COVID-19 lockdown measures. After being cooped up at home for nearly two years, it wouldn’t be surprising if fitness fans wanted to exercise elsewhere. Meanwhile, research firm M Science said it saw no evidence of an increase in demand for home exercise amid the rise of the Omicron variant.
As things stand, Peloton is said to have overestimated demand and thousands of its products are in warehouses and on cargo ships. He supposedly needs to sell a lot of these before he makes more bikes and treadmills.
Meanwhile, according to the presentation, it has been pushed back from October to next month, and the product may drop again to April. Peloton Guide is a strength training system that uses camera and machine learning to track users’ movements and help them compare their form to an instructor.
Earlier this week, it was that Peloton is looking to reduce costs. Measures could include layoffs and store closures.
Ploonge reached out to Peloton for comment. The company will release its latest quarterly financial results on February 8, which should make the status of Peloton and its products a little clearer.
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