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The new Apple Watch is running into production problems that will likely result in delivery delays, according to new reports Tuesday.
Japan-based Nikkei Asia reported that the smartwatch’s complicated design is the main culprit, with early assemblies failing quality standards. Citing multiple sources, Nikkei said production of the new Apple Watch has been put on hold as Apple and its suppliers address the problems and work to certify the designs.
Nikkei added that COVID-19 disruptions have made it difficult for Apple and its suppliers to travel back and forth to confirm the specifications firsthand.
Bloomberg News separately confirmed the delay, noting the new device is expected to have a bigger, more complex screen and faster processor. Citing a source familiar with the matter, Bloomberg reported that the production halt will likely result in shipping delays and a reduced supply once it’s available to customers.
Based on past releases, the new Watch is expected to be announced at Apple’s September product event, and will likely go on sale before the end of the year.
In July, Apple reported that revenue for its wearables and accessories unit grew by about 11% in the June-ending fiscal third quarter, to about $8.78 billion.
Apple shares
AAPL,
fell slightly Tuesday, and are up 14% year to date, compared to the S&P 500’s
SPX,
20% gain in 2021.
