The next major player in the race for the Apple Watch crown seems to have the resources to seriously compete, even if it has to overcome other hurdles, according to a new report from The Information, with Facebook planning to release its first smartwatch, could be released as early as next year.

The article, corroborated by four anonymous sources at the company, claims that the wearable will have its own cellular connection and is guaranteed to work independently of a smartphone.

Health is another big area where Facebook is reportedly planning to connect with hardware and software from other companies like Peloton. The wearables will initially run Android, but Facebook is said to be working on its own operating system for the long term, and a second generation could be available as early as 2023.

Meanwhile, Apple Watch 7 is expected to offer a wide range of upgrades. It may come with an advanced microLED display and the ability to monitor blood pressure and possibly blood glucose levels.

This is a rather bold plan, especially when Facebook's previous experience with hardware has been described as "pieced together."

While it is difficult to find a buyer for the Oculus Quest 2, the same cannot be said for the company's smart-screen Portal. Few people will also remember the ChaCha smartphone, which was announced jointly with HTC in 2011.

If anything, the challenges have increased over the past decade. While Facebook has become more dominant, a series of privacy-related Facebook scandals have made consumers skeptical of how Facebook uses data.

This is even before touching on the issue of which companies will challenge the Apple Watch: in addition to LG and Sony, many traditional watch and fashion makers are trying to break Apple's wearable dominance, with limited success. Only Samsung and Fitbit have proven competitive.

Facebook is no doubt aware of the daunting challenges it faces despite its huge R&D budget and ability to advertise to its 2.7 billion members. Perhaps for that reason, the report in The Information suggests that Facebook plans to sell wearables at close to cost. [There is a large gap between the $150 Fitbit Charge 3 and the $399 Apple Watch Series 6. The answer to this question will help predict whether the Facebook Watch has potential or is likely dead on arrival.