Discussing Apple's augmented reality (AR) plans today, CEO Tim Cook said the App Store currently has 14,000 such apps and that number will grow to as Apple continues to invest in this area. Augmented reality consists of superimposing a layer of data on an image of the real world. For example, Google offers a feature called Live View that works with Google Maps for those looking for directions on foot.

On a background composed of real images taken by the front camera of a smartphone, indications are superimposed on the images, as well as the names of some well-known landmarks. In response to a reporter's question about the company's plan for the Metaverse, Cook said, "We see a lot of potential in this space and are investing accordingly."

In 2022 or 2023, Apple would unveil its mixed reality device that offers augmented reality alongside virtual reality (VR). VR is a completely fake environment that is supposed to confuse the user into believing that the completely made up environment they are looking at is real. The mixed reality device will be followed next year by the long-awaited Apple Glass, a device that looks like a regular pair of glasses, but has AR capabilities.

Cook also said today that Apple's research and development has focused on a combination of hardware, software and services. The managing director said: "This is where the magic really happens. There are a lot of investments in things that are not on the market today."

Now that Apple has over a billion active iPhones, it is in a strong position to benefit from the recurring subscription fees and other fees offered to consumers in Apple's services segment. For the just-reported first fiscal quarter of 2022, Apple reported a strong 24% year-on-year gain in services revenue, outpacing the 11% year-over-year gain it reported in iPhone sales from October to December.

AR apps could give a boost to Apple's services unit

It was a brilliant strategy from Apple and devices offering AR, like the headset of mixed reality and the Apple Glass, should certainly increase the income coming from the applications sold to the owners of these devices. Even though the consumer experience with Google Glass has not always been pleasant, Apple may be able to develop enough applications before the product is released to make the device more useful to users upon release.

Immersive AR services can be developed for apps like Apple Fitness+ and video streaming apps could also help Apple unlock the potential of its mixed reality headset and AR glasses.