Apple's Wearables, Home, and Accessories momentum appears to be slowing down, with the company reporting 24.7% growth in the segment during its second quarter of 2021.
The Cupertino tech giant reported $7.8 billion in revenue for the Wearables, Home, and Accessories category, up from $6.2 billion in the year-ago quarter. The category is composed of AirPods and the Apple Watch, as well as HomePod mini and other accessory devices.
Although the segment gained about 25% from last year, and hit an all-time quarterly high, growth appears to be tapering off. In the busy Q1 2021 holiday quarter, for example, Apple reported year-over-year growth of nearly 30%.
The 24.7% growth was also the lowest growth rate among any of Apple's product categories in the company's second quarter, which corresponds to the first calendar quarter of 2021. The next lowest was Services, which saw 26.6% growth year-over-year.
There have also been reports of AirPods and Apple Watch shipments slowing down.
Earlier on Wednesday, a report indicated that Apple has slashed AirPods production by about 25% to 30% for 2021 due to weakening demand.
Apple still managed to beat Wall Street consensus in the category, with several analysts forecasting revenue between $7.2 billion and $7.4 billion.