Apple, unsurprisingly, declined to comment, but the inclusion of an LTE radio would be a logical addition to the Apple Watch, which in its current iteration must be tethered to an iPhone for data on the go.
As for an "S2" processor, the S1 in the first-generation Apple Watch is a low-power custom chip designed to allow for a full day of usage. Initially, even the loading of apps was handled by the iPhone and wirelessly transferred to the Watch, but Apple began allowing native apps with the launch of watchOS 2 last fall.
No one knows yet when Apple is planning to release the Apple Watch 2, but some rumors says now in June, but personally I believe it will be released this Fall at the earliest, eventually when Apple announce the new iPhone in September.
But as I’ve said many times before, the Apple Watch doesn’t need to update as often. It’s a Watch and watches has a very long lifecycle. The first generation Apple Watch can definitely live for at least three to four years until you eventually need to buy a new one. Mainly because of the battery is probably starting to be not as good anymore.
So if Apple will release a new Apple Watch this year I won’t buy it. There is no need. My Apple Watch is still as new and works great. I absolutely love it. It’s one of the best devices I’ve ever bought.