In what could become a major setback for Apple’s biggest, most fancied product ever, WSJ reports, citing unnamed sources, that Apple itself found defect in its just shipped wearable the Apple Watch, thus delaying shipment and roll-out. As a result, Apple’s shares tanked by as much as 9.4%, trading at HK$41.10 as of 1:02 p.m. in Hong Kong.

WSJ sources say that the defective part is supposedly the taptic engine embedded within the Apple Watch. The taptic engine helps mimics a user’s tapping sensations on the Watch, a feature which Apple boasted of almost every time we’ve seen the company talking about Apple Watch.

This news comes at a time, when Apple’s Chief Financial Officer Luca Maestri says that the company is finding it hard to meet the demand, and has hence sped up the Apple Watch production.

The part in scrutiny is supplied by China-based AAC Technologies Holdings Inc., one of the two suppliers of Apple’s taptic engine.

The Street further said, that due to the defect found in AAC manufactured taptic engine, APple is now reportedly sourcing all of the remaining engines for the Apple Watch, from its second supplier, the Japan-based Nidec Corporation.

The Journal said an AAC spokeswoman declined to comment about the company’s customers. Apple too was unavailable for comment.



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