Technology giant Apple is planning to launch two new models of its Watch later this year, with bigger version called "Apple Watch 2" packing a faster TSMC-built processor, GPS, barometer, thinner display and a higher capacity battery.

The second Apple Watch model sounds like a smaller upgrade and will stay the same with some updated components and will not get the Apple Watch 2’s new features, The Verge reported on Monday.

Another model with a similar form factor is expected to come next year alongside LTE support.

Apple is likely to hold an event next month to announce iPhone7 and new Watch models, the report added.