Peloton(US:PTON) Zhi Tong Cai Jing·2025-11-26 07:17Core Insights - Peloton Interactive Inc. has struggled to achieve positive results from its "AI + Smart Fitness Products" strategy, particularly with its new AI-driven exercise equipment, which has shown weak sales performance since launch [1][3][6] - Despite the challenges, management anticipates a gradual increase in sales as the holiday shopping season approaches, supported by significant promotional activities [2][10] Sales Performance - The new AI product line, Cross Training Series, has only seen moderate market traction after eight weeks in retail, with increased foot traffic not translating into substantial sales [1][9] - Peloton's stock has experienced a decline of approximately 23% year-to-date, with a recent drop of 2.3% before rebounding slightly [2] Product Strategy - The company has introduced upgraded AI-driven equipment, including redesigned models of Bike, Bike+, Tread, and Tread+, all featuring the Peloton IQ platform for personalized training [6][8] - The new Cross Training Series includes advanced hardware upgrades and a comprehensive AI coaching system, aiming to enhance user experience [8][9] Pricing and Market Challenges - Peloton has raised prices across its product range, increasing device costs by an average of 11% and subscription fees by about 19%, which may hinder its ability to attract new customers in a low-growth economic environment [9][10] - Sales data from Amazon indicates limited initial interest in the new AI products, although there has been a slight uptick since the launch of Black Friday promotions [9] Consumer Behavior - The holiday shopping season typically sees a surge in fitness product demand, but Peloton faces challenges due to high pricing, leading consumers to consider lower-cost alternatives [10] - The decision-making process for consumers regarding high-priced fitness equipment may involve a lengthy consideration period, impacting immediate sales [10] Safety Concerns - Peloton has faced safety issues, including a voluntary recall of approximately 877,800 high-end Bike+ models due to reports of seat post breakage, which may affect consumer confidence [11]