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iPhone 8 is expected to sport a bunch of significant changes, including an OLED all-screen display with improved 3D Touch and Touch ID sensor. Now, a fresh report reiterates Apple's AR efforts and claims that the company has dedicated as many as 1,000 engineers to just develop AR. Moreover, some form of augmented reality (AR) is also expected to be integrated into the iPhone 8 this year.

Business Insider got hold of a UBS report that claims that over 1,000 employees in Israel are working only on augmented reality, as Apple bets big on the technology unlike other companies who look to invest big in VR currently. According to the report, the company wants to integrate some form of augmented reality feature into the iPhone 8 this year, and it could be something on the lines of moderate 3D mapping or an AR software development kit.

Apple has from the beginning bet big on AR, with Kuo even claiming that the research would put Apple three to five years ahead of other companies who are currently focused on VR. Apple made AR-related acquisitions as well including PrimeSense, Metaio, and recently acquired RealFace.

In his note, researcher Steven Milunovich says that 'Apple appears more interested in AR rather than virtual reality (VR), because the former connects people whereas the latter is often an isolating experience involving a headset that renders the user blind to the real world. AR, by contrast, takes the existing environment and adds a new layer of information to it. For instance, AR apps let you hold up a phone with images superimposed onto the real-world view seen through the camera screen.'

Apple is expected to up the ante with the camera to include 3D sensing capabilities that will be able to make live 3D characters of users to use in games as avatars.

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