The Apple Watch 2 hasn't been unveiled yet, with mostly rumors in the way before the watch's unveiling this September, but that hasn't stopped analysts from looking forward to what future tech could bring. We've been hearing that Apple will drop LCD panels and implement OLED panels into the iPhone in 2017 or 2018 (rumors continue to swirl back and forth between these two years), but it seems as though Apple will implement micro-LED panels into the Apple Watch 3 when it is announced next year (2017).
The source of this rumor comes from DigiTimes, who hasn't always had the best track record when it comes to Apple rumors about what the company is up to next. Despite the source of the rumor though, there seems to be something legitimate in the micro-LED rumor itself: Apple's acquisition of LED company LuxVue Technology back in 2014 may have something to do with this decision. Apple acquired Siri before implementing the voice command (name after the company) into the iPhone 4s. In the iPhone 5s, Apple put its Authentec acquisition to good use (AuthenTec was known for its biometric security manufacturing prior to Apple's purchase), and the result was TouchID.
Apple also acquired Israeli-based LinX, a camera imaging sensor company back in early 2015 before bringing the company's camera tech to the iPhone 6s and iPhone 6s Plus, and rumors hint at a dual-lens camera setup in the iPhone 7 and iPhone 7 Plus. It doesn't seem too off, then, to assume that Apple will put its LuxVue acquisition to good use by changing up the Apple Watch 3 display for better tech.
Apple is said to implement micro-LED displays into the Apple Watch 3 because they provide better battery life and more vivid colors, which is a winning combination in a smartwatch. The current Apple Watch (first-generation) provides up to just 18 hours on a single charge with 5 hours of on-screen time (max), Apple has reported.