A new report suggests that Apple "hit roadblocks" in adding cellular connectivity to the Apple Watch 2. Supposedly, Apple had been working with carriers around the world on support for a cellular-enabled Watch, but eventually scrapped the idea because even with the most aggressive timeline, Apple wouldn't have been able to release such a device until December. One possible issue was battery life, which would take a hit on a more independent Apple Watch with a cell connection. Apple has been looking into lower-powered radios, but those weren't ready.
Instead, the report says Apple will focus more on the health and fitness side of the Apple Watch 2 (something that we all could have guessed) and how the fitness side will be benefited by the addition of GPS. GPS location will make tracking more accurate and may not cause as much of a hit to battery as wireless data.