We tried the new $4,000 treadmill from the billion-dollar startup that could be 'the Apple of fitness' - here's the verdict

• High-tech fitness company Peloton has unveiled a new treadmill that costs $3,995 and enables users to stream live and on-demand fitness classes.
• The treadmill is currently undergoing testing before being shipped to customers this fall.
• Business Insider had the opportunity to test the product and found it easy and fun to use.

Hot on the heels of its wildly successful bike, Peloton has created a new product, the Peloton Tread.

The high-tech fitness company, which was valued at about $1.25 billion after closing a $325 million financing round last May, has a cult following of fans who are obsessed with its core product, the indoor bike. JPMorgan vice-chairman Noah Wintroub has called Peloton "the Apple of fitness."

It's a buzz that even CEO John Foley says he wasn't expecting.

"I was totally surprised by it," Folety told Business Insider in an interview at the Consumer Electronics Show in January. "When I started Peloton with my cofounders, I saw clear as day what it was going to look like and how it was going to work - the technology, the hardware, the software, the business model. I saw everything except the community. The community has blown me away."

Peloton's new $3,995 treadmill, which launches this fall, works in the same way as its indoor bike. It has an HD touchscreen that streams thousands of different live and on-demand classes that users can join from home.

It costs $39 a month to stream these classes, which include a mix of high-intensity boot camp routines, running drills, and mat work. If you already own a Peloton bike, you can steam classes for both machines for this monthly fee. Customers have the option to pay for the Tread in installments. For current members, it's $110 a month for 39 months. New members pay $149 a month for 39 months. You can reserve the treadmill online now with a $250 deposit.

Peloton invited us to its spacious New York headquarters to test out the new treadmill. The office is a couple of blocks from its cycling studio, where you can attend classes or live stream them from home on your bike.

Here's our step-by-step review below: