Apple Watch production hampered by shortages related to the Taptic Engine and the OLED screen?

Apple Watch production hampered by shortages related to the Taptic Engine and the OLED screen?
KGI securities analyst Ming Chi-Kuo, who is usually a step ahead of the crowd when it comes to Apple, predicts that more than 2.3 million Apple Watches will be pre-ordered before the April 24th launch date. He says that 85% of these orders will be for the entry-level Apple Watch Sport models, with 15% going to the stainless-steel Apple Watch version. The analyst predicts that 1% of orders will be for the pricey Apple Watch Edition timepieces. He adds that less than 10% of iPhone owners have pre-ordered an Apple Watch.

Kuo wrote in a note to clients that he expects Apple to produce 2.3 million units of its smartwatch by the end of next month. But Apple has been running into some problems from the supply chain, according to the analyst. The vibration motors used for the Apple Watch's Taptic Engine have been slow to arrive from Hong Kong manufacturer AAC. The manufacturer is believed to be having problems making a motor smaller than the one employed by the iPhone. LG Display, said to be the only source of the flexible OLED display used on the watch, has been tardy in shipping out enough screens. LG's problems have centered around the color accuracy of its panel along with their lifespan.

Kuo sees Apple producing 2 million to 3 million watches a month. For the year, he sees Apple shipping 15 million to 20 million Apple Watch units, less than the Wall Street consensus of 20 million to 30 million units.

source: AppleInsider


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