According to the Wall Street Journal the watch's taptic engine, produces the sensation of being tapped on the wrist.
The taptic engines supplied by Shenzhen, China-based AAC Technologies started to break down over time. The company is one of two suppliers of these components to Apple.
Apple is now sourcing nearly all of its components from Japan's Nidec and it looks like it will take some time for the company to increase production.
No Woad
It is not the only problem that the iWatch is facing. Apparently it is shipping with a feature which disables some of its functions if a person has tattoos.
Apparently Apple is scared that if its users are tough enough to have tattoos they are not the sort of customers that Apple wants to wear its expensive gear. They are normally the people who bully those who wear iWatches. Already there are complaints about Apple's woad ban.
Apple of course is saying nothing about both stories.