Apple Watch glitch slows production: Report

Apple (AAPL) reportedly found defects with a component of the Apple Watch, prompting the tech giant to limit availability of the device.

The issues involved the watch's taptic engine, which creates a tapping sensation on a user's wrist, according to The Wall Street Journal. Supplies of taptic engines produced by Chinese firm AAC Technologies Holdings (AACAY) started to break down over time, forcing Apple to scrap some completed watches.

Yahoo Finance Senior Columnist Michael Santoli says the limited availability of the Watch won't be a problem for Apple.

“Apple is OK if this is a slow build, not something that's a blockbuster out of the gate,” he says. “This supply chain issue is definitely not welcome, but I don't think…this is going to change the orientation of people buying it.”

Santoli adds that the supply troubles will make it difficult to gauge the Watch’s popularity.

“It's not necessarily getting universally great reviews,” he says. “Some influential tech bloggers and venture capitalists say it's not that impressive, and that it really doesn't change your way of interacting with your technology.”

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This defect marks the second recent glitch in Apple’s supply chain. Last year a bankruptcy at an Arizona plant caused Apple to scale back plans for sapphire iPhone screens. Santoli doesn’t expect supply issues to become a recurring issue for Apple.

“Remember, Tim Cook was the operations guy, he was the guy who built the supply chain,” he says. “They managed to sell 61 million iPhones with the supply chain, so I don't think it's something that we have to be too concerned about.”

There is no indication that Apple has shipped any defective watches. “Apple portrays itself as having a zero tolerance for this,” Santoli says. “They're not going to put out a product if they think that there's some consistent issue with it.”