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And according to a Bloomberg report, Apple will have its AR ducks in a row in terms of production by 2019, and could ship a product by 2020. It will also have its own chipset, and an operating system now known as rOS, according to Bloomberg anonymous sources familiar with the device.

The benefits of that strategy may also manifest in the AR headset, with the new chip being similar to the "system-on-a-package" chip that now powers Apple Watch.

The OS, tentatively dubbed "rOS" ("reality operating system") internally, would be yet another iteration of iOS, similar to tvOS and watchOS, Bloomberg reports.

In addition to a predictable second version of the ARKit software tool collection reportedly planned for a 2018 release, those long-rumored Apple smart glasses might be starting to shape up, according to "people familiar with the situation" quoted today by Bloomberg. The company is looking to create a device that will change the game as much as the iPhone did back in 2007.

Although it declined to comment on the story, Apple has made no secret of its desire to harness augmented reality technology, with company CEO Tim Cook publicly praising the nascent tech.

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Apple has been talking a lot about AR lately. And even though the headset is still more than two years from release, Bloomberg's sources said Apple's launch schedule is ambitious.

Could an AR headset really transcend the iPhone as Apple's number one product? Magic Leap, which has been quietly working on its own augmented reality hardware, is thought to be targeting consumers instead.

Reality check: In just a few short months, Apple has gone from the AR sidelines to the front of the pack, with a spate of apps that take full advantage of the Apple's new engine. The operation of The device augmented reality will support the new chip, which was developed at Apple.

The company has not figured out how users will run the program and adjust the headset. Apple is also reportedly testing different methods for controlling the headsets such as touchscreens and voice activation using Siri.

Apple's ARKit is already one of the best augmented reality engines around. Apple engineers are using HTC Vive headsets to test their ideas for a wide range of applications, from mapping and texting to more futuristic things like virtual meeting rooms and 360-degree video feeds. Simply put, he said, Apple believes AR is forever going to change the way we use technology.


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