Apple declined to comment on the story.
Apple has not given any sales figures for its hotly anticipated Apple Watch since it began taking orders this month. Chief Executive Tim Cook said on Monday that demand continued to outstrip supply.
Some taptic engines supplied by Shenzhen, China-based AAC Technologies Holdings Inc started to break down over time, the Journal said, citing the people. The company is one of two suppliers of these components to Apple, it said.
As a result, Apple is now sourcing nearly all of its components from the other supplier, Japan's Nidec Corp. It may take time for the company to increase production, the people told the Journal.
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