According to Mark Gurman, Bloomberg's new report, Peloton is the latest company to blame Apple for its privacy changes in iOS.
Peloton is best known for its online and at-home fitness equipment. However, the App Tracking Transparency rules (ATT) Apple introduced in iOS 14.5 made it harder for Peloton to add new subscriptions. They targeted online shoppers based their interests.
This claim was made by the company in its most recent earnings call. It cited slower than anticipated post-pandemic economic recoverys before reducing its annual revenue forecast to $1 billion and lowering its profit margins and projections for subscribers.
Peloton stated that it expects sales to be between $4.4 billion and $4.8 billion for the fiscal year ending June 2022. This is down from $5.4 billion it forecasted less than three months earlier.
Apple requires apps to ask users permission to track them on other websites and apps if they are running iOS 14.5 or later. Users can choose to opt out of being tracked for advertising or marketing purposes under the ATT framework.
Apple explains that some apps contain trackers embedded within them that take more data than they require in a promotional video. Sharing it with third parties like data brokers and advertisers... This is happening without your permission. Your data is available for sale. You are now the product.
Mark Zuckerberg made similar complaints about Apple last month. He blamed Apple's privacy settings for the lower-than-expected quarterly growth at an earnings call for Meta (formerly Facebook). According to the Meta CEO, the changes would "not only negatively affect our business but also millions of small businesses during a time when it is already difficult for them in their economy."
One report claims that Apple has cost social media companies like Meta, Snapchat, Twitter and YouTube nearly $10 billion in revenue over the second half 2021. Peloton has other concerns about Apple. This week, the company expanded Fitness+, its home fitness service, to 15 more countries.
Peloton shares dropped by nearly 20% after Apple presented new Apple Fitness+ features during its September event. Reports earlier this week suggested that a dip in Peloton shares was due to a patent being approved for Apple's Fitness+ app. This app features HIIT, Yoga Core and other workouts. It is similar to Peloton classes.
