Bloomberg reports that the Apple Watch 2 will not include cellular connectivity. Instead, the new Watch will include built-in GPS instead to improve new fitness features of the Watch.
For example, in watchOS 3 and iOS 10, the Activity app will now map your run using the iPhone’s GPS. Though, that doesn’t throw the cellular idea out the window. The report says the reason behind ditching cellular connectivity is due to lackluster battery life.
This report corroborates with a report from KGI who also says GPS will be available in addition to further waterproofing. The Apple Watch 2 is expected to feature the same design with much needed internal upgrades and likely a price drop.