Apple is set to reorganize its subscription service, Apple Fitness+, in a bid to stimulate growth and improve performance. This decision comes as the service, launched in 2020, has seen limited changes and remains priced at $9.99 per month or $79.99 annually. According to a report by Mark Gurman in Bloomberg’s Power On newsletter, Fitness+ has struggled with “high churn” rates and “little revenue upside,” making it one of Apple’s least successful digital offerings.
Since its introduction, Apple Fitness+ has only added a few new features, such as integration with Strava and the option to use the service without an Apple Watch. Despite this stagnation, Gurman notes that Apple is not planning to abandon the service. The platform maintains a dedicated user base, and any move to discontinue it could provoke significant backlash, which Apple aims to avoid. Furthermore, the operating costs for Fitness+ are relatively low, given that all content is produced in-house.
Leadership Changes to Enhance Performance
To tackle these challenges, Apple is implementing a reorganization within the division. Sumbul Desai, Apple’s Vice President of Health, will take on additional responsibilities by overseeing Fitness+. Following the impending retirement of Jeff Williams, the Chief Operating Officer, Desai and the Health division will now report to Eddy Cue, the Senior Vice President of Services. This restructuring is expected to create new pressure on Fitness+ to enhance its performance and offerings.
Apple has also been focused on expanding its fitness capabilities outside of Fitness+. Recently, the company introduced Workouts to the iPhone, eliminating the necessity of an Apple Watch for users. Additionally, the latest models of AirPods Pro 3 and Powerbeats Pro 2 feature built-in heart rate monitoring, compatible with Fitness+. The Apple Watch now includes a feature called Workout Buddy, which employs artificial intelligence to provide personalized insights and motivation during workouts, utilizing voices trained on Fitness+ trainers.
Future Prospects for Apple Fitness+
As Apple prepares to refine the Fitness+ experience, the potential for new features and enhancements remains a focal point for the company. The service is currently available as part of a subscription package or on its own, and customers can benefit from a three-month free trial with the purchase of a new Apple Watch, AirPods Pro 3, Powerbeats Pro 2, iPhone, Apple TV, or iPad.
The upcoming changes are aimed at rejuvenating the platform and aligning it with Apple’s broader health-focused image. As the company navigates this transition, users of Fitness+ will be watching closely for any developments that may enhance their experience and engagement with the service.
