Apple finds defects with Apple Watch component - WSJ

(Reuters) - Apple Inc has found defects with a key component of its Apple Watch, prompting it to limit availability of the product, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The component, called the taptic engine, produces the sensation of being tapped on the wrist, the newspaper reported.

Apple was not immediately available for comment.

Apple has not given any sales figures for its hotly anticipated Apple Watch since it began taking orders this month. Chief Executive Tim Cook said on Monday that demand continued to outstrip supply.

Some taptic engines supplied by Shenzhen, China-based AAC Technologies Holdings Inc <2018.HK> started to break down over time, the Journal said, citing the people. The company is one of two suppliers of these components to Apple.

 

As a result, Apple is now sourcing nearly all of its components from the other supplier, Japan's Nidec Corp <6594.T>. It may take time for the company to increase production, the people told the Journal.

The Journal said an AAC spokeswoman declined to comment about the company's customers. Reuters was unable to reach the company for comment outside of regular business hours in China.

Nidec was not immediately available for comment.

(Reporting By Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila and Robin Paxton)