Apple Watch: AAC Technologies’s Defect Component Slows Supply

[Hamartia Antidote]

Apple Watch: AAC Technologies’s Defect Component Slows Supply - Asia Stocks to Watch - Barrons.com

The Wall Street Journal reported this morning that a key component of the Apple Watch (AAPL) made by one of the two suppliers was found to be defective, which limits the availability of the highly anticipated new product.

The taptic engine, designed by Apple to produce the sensation of being tapped on the wrist, is supplied by two manufacturers: China’s AAC Technologies (2018.Hong Kong) and Japan’s Nidec Corp (6594.Japan).

After mass production began in February, some taptic engines supplied by AAC Technologies start to break time over time. Nidec does not seem to have any problem.

Apple seems to be dropping AAC Technologies and in search for a new supplier, reported Journal’s colleagues Daisuke Wakabayashi and Lorraine Luk:

People familiar with the matter said Apple is considering adding a second assembler of the Watch, to supplement Taiwan’s Quanta Computer Inc. (2382.Taiwan) Those people said Foxconn, formally known as Hon Hai Precision Industry Co. (2317.Taiwan) and the main assembler of the iPhone, recently started early testing to potentially produce the Watch.

This hiccup is now creating a supply bottleneck:

Apple last week told some watch suppliers to slow production until June, without explaining why.

Apple started accepting orders for the Watch online on April 10 and began shipping watches to customers on Friday. It is selling the watch online and in select designer boutiques, but not in its own retail stores.

In a memo to retail-store employees earlier this month, Apple retail chief Angela Ahrendts said stores won’t get watches to sell until the end of May because of “high global interest combined with our initial supply.” New online orders will be delivered in June, Apple says on its website.

Shares of AAC Technologies are trading at 13.8 times forward earnings, in line with its 5-year historical average. Nidec Corp., which may benefit from this, is trading at 24.8 times, well above its historical average of 17 times.

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@Nihonjin1051 looks like Japanese companies may be in Apple's future.

 

[Aepsilons]

@Nihonjin1051 looks like Japanese companies may be in Apple's future.

He he he, not just Apple, my friend. Also in Chinese phone giants such as Xiaomi et al.

Xiaomi owes smartphone success to Qualcomm, Japanese technology
HIROKI YOMOGITA, Nikkei staff writer

Xiaomi owes smartphone success to Qualcomm, Japanese technology- Nikkei Asian Review


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Chinese Smartphones Lift Japan’s Electronics Business - WSJ

 

[Hamartia Antidote]

He he he, not just Apple, my friend. Also in Chinese phone giants such as Xiaomi et al.

Xiaomi owes smartphone success to Qualcomm, Japanese technology
HIROKI YOMOGITA, Nikkei staff writer

Xiaomi owes smartphone success to Qualcomm, Japanese technology- Nikkei Asian Review


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Chinese Smartphones Lift Japan’s Electronics Business - WSJ

"From the beginning, Xiaomi has mainly used reference designs to manufacture its devices, allowing it to slash development times and minimize the size of its engineering staff, thereby holding down costs. The teardown shows that Xiaomi adopts parts described in Qualcomm's reference designs. Kashio said this was evident in part because of the many Japanese electronic components it uses."

hahahaha!!!

 

[Aepsilons]

"From the beginning, Xiaomi has mainly used reference designs to manufacture its devices, allowing it to slash development times and minimize the size of its engineering staff, thereby holding down costs. The teardown shows that Xiaomi adopts parts described in Qualcomm's reference designs. Kashio said this was evident in part because of the many Japanese electronic components it uses."

hahahaha!!!

So you see, my friend, why Japan is not necessarily against China's inherent rise. Japanese companies have actively worked to ensure China's economic growth by investing in Chinese smart technology companies and tech start ups. An example of 'transformational' relationship. hahaha!

Japanese --- we like to 'tap' into people's (nation's) inherent strengths.

 

[Hamartia Antidote]

So you see, my friend, why Japan is not necessarily against China's inherent rise. Japanese companies have actively worked to ensure China's economic growth by investing in Chinese smart technology companies and tech start ups. An example of 'transformational' relationship. hahaha!

Japanese --- we like to 'tap' into people's (nation's) inherent strengths.

You guys should pay a kickback to Qualcomm.

 

[Aepsilons]

"From the beginning, Xiaomi has mainly used reference designs to manufacture its devices, allowing it to slash development times and minimize the size of its engineering staff, thereby holding down costs. The teardown shows that Xiaomi adopts parts described in Qualcomm's reference designs. Kashio said this was evident in part because of the many Japanese electronic components it uses."

hahahaha!!!

It is part of Japanese Military Martial Art Philosophy of Aikido. Use your rival's own power to your benefit. Don't resist the enemy's blows, just 'redirect' it.

Aikido is non-resistance. As it is non-resistant, it is always victorious. Those who have a warped mind, a mind of discord, have been defeated from the beginning.

There is no conflict in love. A mind of conflict, thinking of the existence of an enemy, is not consistent with the spirit of the universe. Those who do not agree with this cannot be in harmony with the universe.

Don't look in the opponent's eyes, or your mind will be drawn into his eyes. Don't look at his sword, or you will be slain with his sword. Don't look at him, or your spirit will be distracted. True budo is the cultivation of attraction with which to draw the whole opponent to you.

 

[macnurv]

I came here to bitch about how utterly useless and non-sense Apple Watch is, instead there is a dick measuring contest in full flow here.