Apple Stock News
A key component of the Apple Watch has been found to be defective, according to the Wall Street Journal, prompting Apple Inc. to limit the availability of the new product. The taptic engine, one of the key technologies that Apple created for the watch, is designed to lightly tap users on the wrist, a less intrusive way to alert them than vibrating or ringing. Reliability testing of the device revealed that the taptic engines of one of two suppliers started to break down over time, causing Apple to scrap some completed Watches.
Taptic engines produced by a second supplier didn’t experience the same problem, and Apple has moved nearly all of its production of the part to this supplier. However, it might take time for this supplier to increase its production, causing the Watch to be underproduced. Demand currently far outweighs the supply of the device, as deliveries are currently scheduled to be made in June even though they are technically already on the market.
Apple is not selling these devices in its own stores yet, as it is only available in certain boutique shops and online. It started taking orders for the new product on April 10th, and began shipping them to customers on Friday, April 24th. Stores won’t get the device for sales until May because of the shortage of supply. It is currently unclear how big a role the faulty part has played in the limited supply, but Apple is considering adding another producer of the technology. This product is important to Apple to show it can still innovate and define new categories under new CEO Tim Cook, as it is its first new category of hardware since the iPad in 2010.
