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The next Apple watch will connect to cell networks

Eric Risberg / AP

Apple's new watch, to be released later this year, will work without an iPhone, Bloomberg scoops. The watches will have LTE chips that will let them do things like download songs and use apps without needing an iPhone's network connection.

Why it matters: Separating the Apple Watch from the iPhone would be a "game changer," one analyst told Bloomberg. "If they could deliver an experience that isn't tethered to an iPhone, it could kick start a new direction for the business," said Gene Munster, co-founder of Loup Ventures.