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Apple CEO Tim Cook has previously stressed that he sees more potential in augmented reality (AR) than virtual reality (VR). He had also claimed that Apple will continue to invest a "lot" in augmented reality. A new report suggests that Apple is working to integrate augmented reality into iPhone's camera app.

Business Insider citing a person familiar with the matter reports that Apple's effort to include AR in iPhones includes technology from Metaio and Flyby Media, two of the companies that were acquired by the company in recent years.

To recall, Apple acquired Metaio, a German company which created virtual product showrooms and other products for clients such as IKEA, in May last year. The Flyby Media, on the other hand, was acquired by Apple earlier this year.

Notably, Apple is also rumoured to be working on augmented reality-based wearable glasses. With the added AR capabilities, Apple sees people using iPhones to "point the phone at a real-world object and have it be recognised," adds the report.

The report states that the employees of both Metaio and Flyby Media are working with Apple's camera team for augmented reality feature. It also said that Apple will release the AR as SDK for app developers much like it released for Touch ID fingerprint sensor. Another use of augmented reality being contemplated by Apple according to reports is for automated driving platform.

Based on preliminary leaks, Apple is said to ditch the 'iPhone 7s' name for next year's iPhone based on its naming convention and directly name it iPhone 8 considering 2017 will be its tenth anniversary of launch of the original iPhone.

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