According to DigiTimes, the second generation Apple Watch will arrive this September or October. Considering that the first generation smartwatch went o sale in September 2014, that timetable sounds about right.
It would make sense for the Apple Watch 2 (pictured here in fanciful mock-ups only) to debut alongside the iPhone 7 (or 6SE, depending on which rumor you believe), which is speculated to debut on Sept. 12.
So what would be new in an updated Apple Watch? Some sites are suggesting that a FaceTime camera for video calls would be added, but the biggest change would be to make the Watch less dependent on the iPhone when on an Wi-Fi network. The setup and update processes could be made much faster as a result. Also, lots of folks are hoping for a waterproof (as opposed to water resistant) Apple smartwatch.
There are also reports that Apple will introduce a "smart band" capable of monitoring important health data such as "blood oxygen levels, respiratory rate, blood pressure, and body temperature," and perhaps more. Some analysts are predicting that it will be "20 to 40% thinner" than the original Apple Watch. Others claim that the display will have a flexible OLED, but won't change in terms of size or resolution.