Generation 2 Premium Peloton Bike Rumors & Information
Release date, pricing, features, cost, details and rumors about the Generation 2 Premium Peloton Bike (or Peloton Smart Bike).
First, let’s get this out of the way – Is there a new version of the Peloton bike coming out? The answer is yes! Over the past year or so, Peloton executives have been talking about their product strategy, which involves a “better/best” product line. Stated another way – Peloton aims to have one budget product of a certain type (the “better”), and one premium priced product of the same type (“the best”). For the Tread, the original Tread is the “best” product, with Peloton working on a lower cost Tread as the “better” product.
Latest Update: July 2020 – Peloton was involved in a Barron’s Investing call where they were asked about future products.[Sidebar – Note that people already refer to 2nd or 3rd generation Peloton bikes. Currently, when people talk about those, they are actually referring to just the tablet, or video screen, on the bike. Peloton has released new versions of the tablet, however, the actual bike hardware has remained the same. The true second generation Peloton bike would be an updated version of the hardware and frame itself, along with a new tablet as well.]
Peloton CEO John Foley has stated in interviews that he hopes to make the current generation bike priced more affordably, so that more people are able to purchase it. One statement that pops up a lot is that the current Peloton bike is sold “at cost”, which isn’t an entirely true fact. Peloton says that their net profit on each bike is $0 – but that includes the marketing cost built into each bike. As they slow down, or more effectively scale their marketing, they are able to make each bike sale more profitable, or alternatively, reduce the price. John Foley touched on this dynamic in his interview with NPR in the summer of 2020.
So if the current bike will drop in price and become more affordable, that means it is targeted as the “better”, or budget bike. This means that Peloton will eventually come out with a 2nd generation, higher priced premium Peloton bike to be the “best” product for their bike line. Originally, it was thought that this new best bike would be released later as Peloton was focusing their efforts on a Peloton rower. However, recent comments, including most recently in July of 2020 at a Barron’s Investing in Tech call, seem to imply that Peloton might have changed courses and is now thinking of launching the new smart bike before they launch the Peloton rower.
What will the cost of the second generation premium Peloton bike be? How much will it cost?
There are a couple lines of thinking on what the cost of the smart Peloton bike would be. Since the current generation bike will eventually be lowered in price, Peloton has the opportunity to price the new Peloton smart bike only slightly higher than the current bike, keeping it in the $2,200 – $2,500 range. It will most likely boil down to what all the new features are of the new generation bike, and what the manufacturing cost will be. In particular, if Peloton aims to have a more accurate power meter technology, that could drive the pricing of the bike up.
What features would the new version of the Peloton bike have?
That’s harder to nail down at this point. While we know the bike is coming, very little is known about it. Here are a few likely candidates for features though.
- Fore/aft adjust of the handlebars – the current generation bike only adjusts up & down
- Smart Bike Features – Ability to set a power level and keep it there as your cadence changes (also known as ERG mode for the Peloton)
- Ability to swivel or pivot the video tablet, making it easier to do the floor/yoga/meditation content
- More Coming Soon
When will the 2nd Generation Smart Peloton bike be announced or released?
The most recent information points to a possible announcement in late August or September 2020. Some recent research into Peloton’s manufacturers, in particular Rexon, seem to include some evidence that both the new bike and new tread could be released in that Q3 2020 timeframe.
We’ll continue to update this page as more news & information becomes available. You can always check out our main rumors & breaking news page for the latest Peloton news as well.