Fitness firm Peloton is the latest firm to blame Apple’s iOS 14 App Tracking Transparency privacy feature for hurting sales. Despite efforts to increase sales, including dropping the price of its smart bike, Peloton has announced a drop in its annual revenue forecast of almost $1 billion.
According to Bloomberg, the fitness company says that it now expects sales of $4.4 billion to $4.8 billion in its financial year up to June 2022. It had previously predicted $5.4 billion.
During the Peloton earnings call, CEO and co-founder John Foley said that future performance was proving harder to predict than anticipated.
Demand for fitness products has dropped post-pandemic as buyers have begun returning to their offices and gyms. Supply constraints, plus rising freight costs, were factors.
Peloton also blamed Apple’s ad-related privacy changes for the drop in revenue, saying the Cupertino firm’s move has made it more difficult to target buyers.
“We anticipated fiscal 2022 would be a very challenging year to forecast,” Peloton management said in a letter to shareholders, seen by Bloomberg. “We will be taking concrete steps to reexamine our expense base and adjust our operating costs.”
Peloton has also said that it will be introducing new products.