Bloomberg claims that Apple is gearing up to release its own augment reality headset as early as 2020.
Unlike the current generation of virtual reality headsets that use a smartphone as the engine and screen, Apple's device will have its own display and run on a new chip and operating system, according to the report.
As with previous products, Apple isn't waiting around for someone else to create a chip capable of powering its AR headset. It's designing one in-house that's similar in concept to the "system-on-a-package" component in the Apple Watch.
While virtual reality brings the user in a digital world, augmented reality overlays images and data on the real one.
The headset will also run on Apple's new operating system, internally dubbed "rOS" for "reality operating system."
"We're already seeing things that will transform the way you work, play, connect and learn," Apple CEO Tim Cook he said in the most recent call. "Put simply, we believe AR is going to change the way we use technology forever."
Apple declined to comment.