Ordinarily, a big Apple entry into a solid market would be doomed for players there, but when it comes to Apple’s latest digital workout service, it doesn’t look like investors are worried that Fitness + Die Destroy dynamism.
Part of this could be that expectations for these stocks were already factored in. The fitness game was rumored in a report in Bloomberg last month, but few details were released on the service announced today, which appears to mirror the offerings of Peloton and Fitbit but takes full advantage of Apple Watch hardware.
Peloton already had a great day, currently up more than 5%, although there was a brief hit during the Apple Fitness + presentation before it bounced back. The stock is currently up a staggering 1
Fitbit’s share price remained relatively unchanged in intraday trading. The company launched a Fitbit Premium service last month, but inventory has been unchanged since the beginning of the year.
It wasn’t much different for the more established fitness companies. Weight Watchers International, whose share price has almost halved since the start of the year, was down less than 1% at the time of writing, and Planet Fitness, which had a difficult year but showing signs of recovery, was up nearly 5% at the time of writing.
Why so little movement across the board? Well, Apple is currently pushing for a number of digital markets to enter its services business, and that proliferation may mean less emphasis is placed on dominating an industry. With the Apple One subscription bundling fitness at the top level, there is always a risk that consumers will not leave another subscription to join Apple, but already with the Apple One, they will not be able to deal with competing fitness services.
Underestimating Apple is never a wise proposition, but the company is in an unprecedented position in trying to launch multiple digital services, and at least to begin with, they weren’t all slam dunks.