With an electric vehicle and a streaming TV service reportedly in the works, what's next for Apple?
Augmented reality, according to Piper Jaffray senior research analyst Gene Munster.
The tech giant has already assembled a small group, "likely trying to understand a wearable interface that design would ultimately make fashionable/socially acceptable," Munster said in a report published Tuesday.
There is, of course, no guarantee that the team's work will yield a marketable product.
"While augmented reality is likely 10 years away from broader consumer adoption, we believe it has the potential to be as profound a technology platform as the smartphone today," Munster said.
"[I]t is difficult to size the opportunity," he continued. "However, we believe Apple's early involvement in the space suggests the company is preparing for the next evolution of computing."
Cupertino's "evolving fashion advantage"—i.e. the Apple Watch—could also lend itself to the development of a product consumers will actually buy, as opposed to a the "prototype style offerings" available today.
The augmented reality market remains unsteady, seesawing between the failed first-generation Google Glass and the future possibilities of Microsoft's HoloLens, both of which overlay digital information on the physical world.
Unlike the Oculus Rift's virtual reality platform—a completely immersive experience that places you in court-side seats, the front cart of a roller coaster, or backstage at a concert.
Details about Apple's plans to enter the AR field remain scant, but the company's early involvement in the space, Munster said, suggests preparation for the next evolution of computing.
Apple did not respond to PCMag's request for comment.
"We believe augmented and virtual reality are important themes because they can transform how consumers interact with computers [and] smartphones," Munster's report said.
He also cites light field technology like Magic Leap, in which Google invested $542 million, which could "take over as a person's core technology interface."