Citing sources "familiar with the situation", the report notes that this headset will feature a brand new display and run on a new chip and fresh operating system instead of the iOS mobile platform that now runs ARKit.
The in-house chip would have a similar design to what's now in the Apple Watch, which allows for more components in a smaller area.
The operating system is known internally at Cupertino as "rOS" (for reality operating system).
In the gap between now and release, Apple apparently intends to release a new version of ARKit with better software tools that make AR development much easier next year.
With public support from Apple CEO Tim Cook, Apple sees augmented reality as a possible next step in its future. Microsoft, with its expertise in gaming, the cloud, and a head start with HoloLens, seems to be in the driver's seat, but Apple is a consumer facing powerhouse, with lots and lots of money to throw at these hard problems. In other words, it would be a standalone device - and wouldn't rely on a smartphone to power it, like most headsets now on the market.More news: Spelunky 2 Announced for PlayStation 4
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Unlike current rival headsets from competitors, which tend to clip a smartphone into the headset, Apple's augmented-reality headset will be a standalone product that will have its own display, and will run on a new chip and operating system. Augmented reality (AR) is a form of VR that blends virtual objects into real world settings.
While it may be another newly designed iPhone, one report hints at something truly different and possibly revolutionary: an augmented reality headset. "But today I can tell you that the technology itself doesn't exist to do that in a quality way", Vogue quoted Cook as saying.
According to Bloomberg, the iPhone maker is now experimenting with ways in which the headset can be operated, like using Siri, head gestures or a touch panel. The company wants to have the headset's core technologies completed by 2019. The company has high hopes for this device, and we may see it revealed sometime in 2019.
A look at Apple's AR capabilities on iOS 11. "There's virtual reality and there's augmented reality-both of these are incredibly interesting". Simply put, he said, Apple believes AR is forever going to change the way we use technology. In virtual reality (VR), the running has been done by HTC with its Vive headset, which was developed with Valve Software and runs via Valve's popular Steam PC game download service.