Huawei is developing a sequel to the original Huawei Watch launched in March 2015. It went on sale in the UK in November starting at £289.

The second generation wearable is likely to feature a sportier look when compared to the original edition, but it is expected to have the same 1.4in display and classic styling; it may come with either leather or stainless steel straps.

A key feature of the wearable dubbed Huawei Watch 2 is said to be cellular connectivity, a source familiar with company's plan told Venture Beat. The latest disclosure suggests a built-in SIM card in the watch would enable data connections when it is out of Wi-Fi coverage area or paired smartphone. The watch would be able to make and receive phone calls.

The company is planning to make an announcement about the watch at the upcoming Mobile World Congress event in Barcelona in February, the same event the first generation watch was unveiled at.

Huawei is not the only player in the market. LG is planning its own version of Android Wear wearables. LG has reportedly teamed up with Google to launch its smartwatches, namely LG Watch Sport and watch Style, powered by Android Wear 2.0.

These devices are likely to debut on 9 February when Google is expected to roll out the Android Wear 2.0 operating system for compatible devices. Google has just issued the fifth and final developer preview of Android Wear 2.0 adding support for iOS with other enhancements and bug fixes.