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Apple Watch 2 reportedly faces hurdles in bid for iPhone independence

Rumors pegged Apple's next smartwatch as a standalone cellular device that would work without being connected to the iPhone. Now, major problems are cropping up, Bloomberg reports.

Now playing: Watch this: Apple's next watch may still be tethered to an iPhone

The Apple Watch 2 has hit some major stumbling blocks to changes that would make the smartwatch operate with its own cellular network connection, Bloomberg reports.

Citing sources "with knowledge of the matter," Bloomberg didn't outline what kind of problems arose, but said that Apple plans to stick to its scheduled watch announcement this fall. The publication also said the second Apple Watch should come with better tracking for health functions and GPS location.

Apple's Watch update is expected to occur at the same time as the launch of Apple's iPhone 7, its flagship phone for 2017 that rumors say will take place as early as September 7.

The report comes at a time when rival device-makers like Samsung prepare for their own flood of new smartwatch competitors. Samsung has already teased its reveal of the Samsung Gear 3 watch in the next few weeks; Google's improved Android Wear 2.0 software for Android-based watches will also hit this fall.

Apple did not immediately comment.