Apple CEO Tim Cook should be raked over the coals for not divulging issues with the Apple Watch this week. According to a report in the WSJ, the issue is with a part called the taptic engine, the part that produces a sensation on the wrist. The newspaper said of the two suppliers, AAC Technologies was found to have produced faulty parts. That might explain why the supplier's stock (HKG:2018) has performed badly over the past week, down about 14 percent while much of the HK market rallied. (Parts from the second supplier, Japan's Nidec Corp. apparently did not have similar issues). And it also explains why production of the watch has been behind schedule, causing a delay of some customers' pre-orders. Back to Apple CEO Tim Cook. Why did he not divulge this in the conference call after Apple's earnings on Monday? Presumably he was well aware of this. In the long run, the supply issue is not likely to plague Apple - think back to snafus with the iPhone 6 and the antenna problem several years ago. But transparency issues with the CEO could mark a deeper issue. Here's the WSJ story:
http://www.marketwatch.com/story/faulty-taptic-engine-slows-apple-watch-roll-out-2015-04-29?dist=afterbell
