What you need to know
- Peloton has revised its annual revenue forecast down by $1 billion.
- The company says headwinds created by Apple privacy changes are partly to blame.
Peloton says that privacy changes made by Apple in iOS 14 earlier this year have created some headwinds for the company.
Peloton announced Thursday that it was cutting its annual revenue forecast by $1 billion, and lowered expectations for subscribers and profits because of the impact that emerging from the pandemic had on its business.
Co-founder and CEO John Foley told analysts on an investor call:
Foley said Peloton was experiencing a steeper-than-expected drop in web traffic and a slower-than-expected uptick in retail traffic. However, the company also hinted at some headwinds caused by privacy changes made to iPhone software by Apple:
Peloton is the latest in a string of company including Snap (Snapchat) and Facebook that have warned that Apple's changes, which made tracking across apps and services by third-parties an opt-in feature, could negatively impact their business.
Peloton's shares have fallen more than 32% in pre-market trading Friday.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9