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Apple takes on Peloton with Fitness+ service

September 15, 2020. Summarized by summa-bot.

Apple is moving more aggressively into fitness with its smartwatch at the center.

New York (CNN Business)Apple is moving more aggressively into fitness with its smartwatch at the center.

On Tuesday, Apple announced a new subscription service called Fitness+ that's compatible with the metrics tracked by the Apple Watch.

The fitness program features a variety of workout videos -- from yoga and dance to strength training -- that can be accessed from an iPad, iPhone or Apple TV.

The fitness subscription is the latest offering in Apple's growing services business.

It also comes as consumers increasingly turn to digital fitness services due to the Covid-19 pandemic.

Health and fitness have been a focus for the Apple Watch in recent years, with new features including blood oxygen monitoring, the ECG app, high heart rate notifications, fall detection and menstrual cycle tracking.

Fitness+ marks a significant step into the workout world and into further transforming its smartwatch into a device to help people live healthier.

"This speaks to the much bigger evolution of the company in the health care and fitness space, which is going to be multi-year in nature," said Daniel Flax, senior research analyst at Neuberger Berman.

Flax also said what differentiates Apple from competitors is its ability to integrate hardware, software and services in a simple and secure way.

For example, Apple Watch metrics will show up on your iPhone during a workout.

Fitness+ will work with Apple Watches and will track metrics including heart rate, calories burned, pace and distance during the workouts.

With a new Apple Watch purchase, the company is offering three months of Fitness+ for free.

At its investor day on Tuesday, Peloton CEO John Foley said Apple's fitness announcement is a "legitimization" of this type of content, according to CNBC.

It's meaningful enough for Apple," Foley said.

He noted that Peloton differentiates itself with its high-tech bikes and treadmills, while Apple isn't planning any competing fitness hardware.

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