Rumor: Second-gen Apple Watch going into trial production this month
The next-generation Apple Watch could go into trial production with Quanta later this month, paving the way for a launch in the not-too-distant future, according to rumors.

In full-scale manufacturing Apple might also turn to some of its other partners to boost production capacity, Taiwan's Commercial Times said. These could include Foxconn, Inventec, and Wistron.
Trial production is deliberately small-scale, meant to iron out any problems. It's often an immediate harbinger of mass production, which in this case would suggest that Apple is hoping to launch the new Watch within just a few months.
In November, in fact, Quanta's chairman suggested that the product would launch by the end of the second quarter of 2016, putting its debut somewhere between April and June. An April launch might even be more likely, given rumors of a March press event for the device.
At the same time, very few rumors of planned upgrades have emerged, though leaks are less common when dealing with Apple's non-iPhone products. Some talk has pointed to things like a longer-lived battery and improved outdoor visibility.

In full-scale manufacturing Apple might also turn to some of its other partners to boost production capacity, Taiwan's Commercial Times said. These could include Foxconn, Inventec, and Wistron.
Trial production is deliberately small-scale, meant to iron out any problems. It's often an immediate harbinger of mass production, which in this case would suggest that Apple is hoping to launch the new Watch within just a few months.
In November, in fact, Quanta's chairman suggested that the product would launch by the end of the second quarter of 2016, putting its debut somewhere between April and June. An April launch might even be more likely, given rumors of a March press event for the device.
At the same time, very few rumors of planned upgrades have emerged, though leaks are less common when dealing with Apple's non-iPhone products. Some talk has pointed to things like a longer-lived battery and improved outdoor visibility.

Comments
But the prospect up upgrading to new models is harder. While I think the iPhone 6s is a great phone, and I'd like to upgrade from my iPhone 5s, I can't justify the cost just yet. At some point, the 5s will stop working, and I'll be forced to do so. Same is true of my AW. A nice complimentary bonus on going with AW was I got Apple Pay functions that I wouldn't have on the 5s.
What happens is that over several upgrade cycles, the increase in value becomes substantial. I have a 2013 MBA that is a great machine, and suits my needs quite well. And my 2009 27" iMac is the same way. But I can see me converging these products in the future - a laptop with a thunderbolt display will give me the best of both worlds perhaps at a less price than replacing both. But I'll need to be in a position of replacing both to pull that trigger.
tl;dr: I'll need to see extensive "must have" features on a new AW to upgrade.
In a v2 Watch I'd like to see a brighter screen for outdoors and an always-on watch face. And more watch faces! Thinner, maybe by a couple of mm or two. But that could cost battery life, and more battery would be needed for the first two items on my wish list.
I can wait.
If Apple did offer a trade-inprogram of some sort, like an annual upgrade plan like the iPhone, then it's unlike to see anything close to $200 trade in value on their lowest price model. Mainly because I fully expect Apple to continue selling the original Watch Sport and stainless models for $100 or more less new, alongside the Watch 2.
It very well may be that Apple will alter the style in some manner, though I can't imagine what changes they might make. They'll want to sell the first gen alongside the 2nd gen without casting it as last year's now-cheaper model. Who knows? Sure will be fun to see what they do.
So what exactly does releasing a second generation device a year later with more features to justify the expense have to do with upsetting customers who bought the first gen device?
I mean seriously how could Apple possibly sell the first gen watch alongside the 2nd get watch for the same price with a straight face? Besides, the first ten watch has already been sold at a substantial discount at the world's largest discount retailer. Hard to avoid casting it anything other than last year's now cheaper model. The only way to prevent that is for Apple to sell the new model for more than the current model, and leave the current price alone. They don't really have a history of doing that, and I don't really see them doing it now. If anything they drop the price after the first generation model.
I expect gen 2 to have subtle design changes from gen 1, but just evolutionary.
People who can't afford the Watch at the current price aren't even going to look for a reason to use it. If Apple offers a more affordable version, then more people are going to be willing to try it over spending much less to buy a fitbit for instance (if all they want are the fitness functions). And, if Apple adds features customers want, along with a faster processor, and new fashionable design, then there's no competition with the older watch.
Moreover, this is a watch, and traditional watchmakers offer watches at all price points. Again, Apple will be pricing older technology that still does quite a lot, with fewer features, for less than when it was new. Just like the iPhone. Now Apple starts to have a watch collection. In fact, Apple could offer the gen 1 watch as is for several years and still have it be a fantastic device for many people, who don't need the speed, or latest bells and whistles, or at some point update it as a "classic" design when they've introduced 3 or four newly styled models. And it will still be as stylish as it was when they introduced it. That's how most of the fashion and luxury watch industry works as they introduce new models every year, but don't necessarily discontinue a model that's selling well. And Apple has a much better excuse for lowing their prices than other watch makers -- the technology is older, and therefore costs less to make. Watch makers don't really have that ability since the materials to make the watch aren't likely any less expensive from year to year.
ETA: Not Gazelle it seems.
Brighter face would just compound this even further to under 6h.
the activity tracker on the AW is not reproduced by iphone. ive never received a notification from my phone that i havent moved for the hour -- especially since my phone is often in a dock when im working, which would make tracking my movement impossible. as an office work its important to me to get up and move around every hour, and the notifications are perfect for this if i havent.
likewise for heart rate tracking, which it uses several times a week for my cardio workout calculations.