It could take months before Peloton's less expensive treadmill goes on sale.
The connected fitness company that recalled its treadmill products earlier this week said it's working with the Consumer Product Safety Commission and safety regulators to make its $2,495 Tread available, though it did not give an expected release date.
The Tread was initially slated to launch in the U.S. on May 27, however, due to the voluntary recall, Peloton immediately stopped sales. Foley said on an earnings call Thursday a small number of Tread units were available to select U.S. members in a "controlled rollout to gain additional insights and feedback on the product ahead of the launch." The product was only available in Canada and the U.K. before the recall.
Foley said there were quality issues that caused the tablet to detach from the Tread. Peloton notified the CPSC and the safety regulators in the U.K. and Canada about the issue last week.
"We expect to offer the Tread for sale as soon as the CPSC’s full review of the product is completed," Foley said, adding: "While this process typically takes six to eight weeks, it could take longer, so we can’t offer an on sale or revised launch date at this time."
Foley explained the company will continue to produce the Tread and fitness content for the equipment. Peloton will also roll out a passcode for its Tread Plus and Tread by the end of the fourth quarter of fiscal 2021.
The connected fitness company on Wednesday issued an apology for waiting to recall its $4,295 Tread Plus and the Tread, around 125,000 units in total, weeks after the CPSC urged users to stop using the equipment.