Apple Said to Be Considering Augmented Reality for Car Driving System

KGI Securities analyst Ming-Chi Kuo has released a new research report outlining why he believes Apple has shifted its focus from its original rumored car project in favor of augmented reality technology.

According to Kuo, reports that Apple has turned its attention to developing a software-based autonomous driving system "make sense", given that the system will support augmented reality and provide an "innovative user experience".

applecar

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.

We expect Apple to generate preliminary results for AR in the next 1-2 years at the earliest and working with iPhone may be the first step.

Kuo thinks the AR market will increase significantly in 2018 and will replace VR to become the mainstream market focus as Apple enters the field. Kuo predicts the AR and VR markets combined will grow from $40-50 billion in 2018 to $150 billion in 2020, with the majority increase coming from AR.

Apple's increased interest in augmented reality is no secret. CEO Tim Cook has spoken about AR on a number of occasions over recent months, hinting that the company's approach to AR should encourage, not replace, human contact.

In July, Cook said Apple was "high on AR in the long run" and that the company continues "to invest a lot in [AR]." He said he believes augmented reality "can be huge," and in August, he called it a "core technology", while in September Cook said he believes that between VR and AR, the latter "is the larger of the two," because it allows people to "be very present," engaging with one another while having other visual things to see.


According to rumors, Apple has a research team working on augmented and virtual reality, exploring the AR/VR field and investigating how the company could embrace augmented or virtual reality in the future. Apple has reportedly built prototype virtual reality headsets, but Cook's continued comments on augmented reality indicate Apple is more heavily invested in that technology.

Related Roundup: Apple Vision Pro
Buyer's Guide: Vision Pro (Neutral)
Related Forum: Apple Vision Pro

Popular Stories

apple tv 4k new orange

New Apple TV Expected Later This Year With These New Features

Saturday July 12, 2025 3:09 pm PDT by
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Rumors Faster Wi-Fi Support The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
iphone 16 pro pro max

iPhone 17 Pro Models With BOE Displays Will Be Sold in China Only

Thursday July 10, 2025 11:59 pm PDT by
iPhone 17 Pro and iPhone 17 Pro Max models with displays made by BOE will be sold exclusively in China, according to a new report. Last week, it emerged that Chinese display manufacturer BOE was aggressively ramping up its OLED production capacity for future iPhone models as part of a plan to recapture a major role in Apple's supply chain. Now, tech news aggregator Jukan Choi reports...
top stories 2025 07 12

Top Stories: iPhone 17 Pro Rumors, iOS 26 Beta 3, and More

Saturday July 12, 2025 6:00 am PDT by
The iOS 26 public beta release is quickly approaching, while developers have recently gotten their hands on a third round of betas that has seen Apple continue to tweak features, design, and functionality. We're also continuing to hear rumors about the iPhone 17 lineup that is now just about right around the corner, while Apple's latest big-budget film appears to be taking off, so read on...

Top Rated Comments

DakotaGuy Avatar
114 months ago
Instead of trying to augment reality maybe they should augment their desktop Macs.
Score: 21 Votes (Like | Disagree)
Bubba Satori Avatar
114 months ago
Should be an incredibly magical experience on the EmojiCar.
Stay Tuned.

Score: 20 Votes (Like | Disagree)
apolloa Avatar
114 months ago
So you lot get an idea of what they are on about...






However this technology becomes utterly pointless when your car is driving itself.... so Kuo is essentially suggesting Apple is working on technology no one will use because the majority of car manufactures are developing self driving cars..
Score: 9 Votes (Like | Disagree)
H2SO4 Avatar
114 months ago
I wonder if it’s the same augmented reality that Crook, Shill-er et al use when presenting keynotes?
Score: 8 Votes (Like | Disagree)
BornAgainMac Avatar
114 months ago
Apple needs to focus on the reality that people want updated Macs. If I am not using a Mac, my choice of using an iPad, Apple Watch, Apple TV, Apple software and services, the future Car accessory, and the iPhone will diminish over time.
Score: 7 Votes (Like | Disagree)
newyorksole Avatar
114 months ago
It would be nice if Apple updates/tries to perfect their existing line of products before releasing a VR product or automobile.
Score: 5 Votes (Like | Disagree)