Apple Watch Supply Issues Caused by Display and Motor). The engines produced by China’s AAC Technologies were found to break down over time. Engines produced by a second supplier (Japan’s Nidec Corp.) did not suffer the same problem, and Apple has moved ‘nearly all’ of its production to Nidec. The WSJ has also said that Apple is considering taking on a second Watch assembler – probably Foxconn – to supplement Quanta. However, production is unlikely to start until late 2015.
Sources have told the Wall Street Journal that one of the issues limiting supply of the Apple Watch is a defective taptic engine (a new component providing haptic feedback) as rumoured in April (