“A rather speculative KGI note suggests that Apple’s focus on augmented reality (AR) instead of virtual reality (VR) will give the company a 3-5 year lead on the rest of the industry when it launches its first products,” Ben Lovejoy reports for 9to5Mac. “The report also suggests that Apple could use augmented reality as part of an autonomous driving system.”

All of Apple’s past successes were related to human-machine interfaces, such as mouse for Mac, click wheel for iPod, and multi-touch for iPhone and iPad. Assuming Apple successfully develops AR, we predict the firm will enjoy the following competitive advantages: (1) redefining existing key products and leading competitors by three to five years. For instance, this could happen for iPhone, iPad and Mac; (2) eliminating obstacles of Apple Watch and Apple TV by offering an innovative user experience; and (3) entering new business fields, such as autonomous driving system. — KGI analyst Ming-Chi Kuo

Lovejoy reports, “He believes that Apple will initially focus on adding AR capabilities to the iPhone, and doesn’t expect anything to hit the market in less than 1-2 years.”

Read more in the full article here.

MacDailyNews Take: As we wrote last month, we fully expect Apple to investigate the potential of augmented reality which has been so promising for so many years (think apps like Layar which we first tried on our iPhones back in October 2009) yet not fully realized to date.

As the trail of related articles below attests, Apple’s interest in virtual and augmented reality hasn’t exactly been a well-kept secret.

SEE ALSO:
Apple CEO Tim Cook: ‘We are high on Augmented Reality for the long run’ – October 14, 2016
iPhone 7 Plus is the starting point of Apple’s major push into augmented reality – September 28, 2016
iPhone 7 Plus proves Apple is gearing up for augmented reality – September 27, 2016
What iPhone 7 says about Apple’s future augmented reality plans – September 19, 2016
Apple needs to forget chasing Snapchat and go after the Augmented Reality industry – August 25, 2016
Tim Cook publicly confirms Apple has augmented reality plans – July 27, 2016
Apple acquires Flyby Media; assembles large team of virtual and augmented reality experts – January 29, 2016
Apple hires leading virtual reality researcher – January 22, 2016
Apple is building a virtual reality supply chain with disruptive potential, new research shows – November 19, 2015
Analyst: Apple team exploring virtual reality/augmented reality – August 31, 2015
Apple exploring a new reality with purchase of Metaio – June 3, 2015
Apple patents perforated augmented reality display that you can see and hear through – May 29, 2015
Apple acquires augmented reality company Metaio – May 28, 2015
New Apple haptics patent application reveals diamond-layered trackpad that simulates wood, other textures – April 23, 2015
Apple granted U.S. patent for hybrid VR head-mounted display – February 18, 2015
Apple is working on VR user interfaces and gaming; looking for Oculus and Leap experts – February 10, 2015
Apple granted patent for display-based speakers for iOS devices – January 13, 2015
Apple granted a patent for devices with a transparent display – November 18, 2014
Apple’s new iPhones, iPads could feature haptic displays – June 30, 2014
Apple patent application reveals personal display headset invention – May 8, 2014
Apple patent application reveals wildly intelligent multi-tiered haptics system – May 3, 2012
Apple continues to tweak Apple TV video headset accessory – April 10, 2014
Apple patent application reveals sapphire flexible transparent display devices created with Liquidmetal – December 19, 2013
Apple granted knockout patent for head-mounted personal display – December 10, 2013
iGlasses: Apple granted patent for head-mounted augmented reality displays – July 5, 2012
Apple files patent application for haptic feedback touch-based user interface – March 22, 2012