Peloton slides 3% after Apple reveals its competing fitness service will launch on December 14

• Peloton fell as much as 3% on Tuesday after Apple revealed its rival Fitness+ service will debut on December 14.
• The service allows iPhone, iPad, and Apple TV owners to access various exercise classes through their devices.
• Fitness+ will cost $9.99 per month, undercutting Peloton's cheapest $12.99-per-month subscription.
• Peloton CEO John Foley said in September that Apple's move into the segment is a "legitimization" of the industry, adding that Peloton can still stand out thanks to its exercise hardware.
• Watch Peloton trade live here.

Peloton shares tumbled as much as 3% on Tuesday after Apple announced its rival fitness service will launch on December 14.

Apple's service, named Fitness+, allows iPhone, iPad, and Apple TV users to access various exercise classes. Health statistics can be measured through Apple Watches and synced with the courses in real-time. Apple's offering is the first major competitor for Peloton after the latter dominated the sector since debuting its first stationary bike in 2014.

Fitness+ undercuts Peloton's own subscription service, coming in at $9.99 per month or $79.99 per year. Peloton's offering, which can be accessed without one of its fitness products, starts at $12.99 per month.

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Peloton pared losses after opening lower. The company's shares are up 319% year-to-date.

Peloton CEO John Foley said in September that Apple's move into the segment is a "legitimization" of the fitness service industry. He added that Peloton stands apart from the iPhone maker in that it pairs fitness classes with its own exercise hardware.

"We think the special sauce, the magic, is our connected platforms, and in order to work out at home you need a stationary bike if you're going to be biking, you need a treadmill if you're going to be running," Foley said in a September analyst presentation.

Fitness+ joins other services including Apple TV+, Apple Music, and Apple Arcade as part of the tech giant's services push. Apple's services arm has steadily grown in recent years and helped offset slowing iPhone sales. The company revealed a bundle deal named Apple One in October, and the option that includes Fitness+ comes in at $29.95 per month.

Peloton traded at $115.57 per share as of 10:35 a.m. ET Tuesday. The company has 48 "buy" ratings, four "hold" ratings, and one "sell" rating from analysts.

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