The Apple Watch 2 is highly speculated to arrive by the third quarter of the year. Together with the iPhone 7, it is expected to generate a ton of revenue for the Redmond-based tech giant.

Valuewalk reported that the Apple Watch 2's production is right on schedule. The company is in the manufacturing stage of its chips and components, with the production of the smartwatch to start anytime soon. Industry experts are expecting a September launch, with the device hitting the shelves anytime during the fourth quarter.

Apple Watch 2 was previously rumored to be revealed together with the iPhone SE last April, which did not happen.  Apple decided to offer aesthetic accessories for the first generation of its smartwatch during the small phone's launching.

It is also speculated to contain more features and functionality than its predecessor, which many see as the downside in relation to its price. The upcoming luxury watch is expected to have a full Wi-Fi functionality, 3G or 4G connectivity, and better battery life, MacWorld reported.

Several reports suggest that nothing will change in the looks of the upcoming watch.  It will still offer the same design, the same measurements, and it will all be about performance.  However, others says that the upcoming model will be 30 percent thinner. It is also rumored to carry a round face, though many observers believe that it may unlikely happen.

ITPro mentioned that several new apps may find their way to the watch. These may include the Breath app, which Apple recently announced and will function as a guide for its users to calm down in different situations.

"Deep breathing is the very basic part of the relaxation process," Jay Blahnik, a fitness guru and Apple's director of fitness and health technologies, said.

During the recently concluded WWDC, watchOS 3 was  officially announced by Apple. The new smartwatch operating system boasts faster loading time for applications and allows background update and a macOS-style dock for quick access to much-used apps. It also offers a much simpler design that the previous version.

More news is expected as the rumored launch date approaches.