Augmented reality is one of Apple's big new areas of focus, which it highlighted earlier this month at its Worldwide Developers Conference. But how will Apple use AR, which involves using a screen to overlay digital objects onto the real world? A new report from UBS Securities analyst Steven Milunovich raises some interesting possibilities.

Apple has already shown at what AR can do, for example by demonstrating how to use an iPhone to overlay an interactive game board on a real table. But Milunovich suggested 10 additional applications for Apple's AR play, including some we've already seen come to life, such as games and retail. He also sees applications for job training, facial recognition, medical diagnoses and the ability to direct people to safety in case of emergency situations, similar to what Google Glass did to help firefighters find the fastest exits from a building.

Apple did not immediately respond to a request for comment on the report.

Combining various applications could also be useful, Milunovich wrote. "Emergency first aid, a combination of remote healthcare and instantaneous education, could save lives. There are legal issues that would need to be overcome but seem solvable," he said.

Further down the road, Milunovich said, there could be room for iGlass. That is, Apple's take on a Google-Glass-type headset. Could Apple succeed where Google failed?

Advances in headset technology, plus some classic Apple design chops, could make the devices more appealing to the non-geek, Milunovich indicated.

The market for augmented-reality glasses is expected to grow over the next several years. International Data Corp. predicted this week that the market for AR and virtual reality will grow from 10 million headsets in 2016 to 100 million in 2021. AR will be slightly behind VR, the firm said, but analysts added that most consumers will probably get introduced to the concept through their smartphones.

The tools for augmented reality that Apple introduced earlier this month open up a range of possibilities to developers and highlight the tech giant's interest in the area, which Apple chief executive Tim Cook once said was "a big idea like the smartphone."

Apple will need to impress with its 10th-anniversary iPhone, Milunovich said, and in a best-case scenario, a truly innovative iPhone would help the company reclaim its mantle for innovation.

"[We] can picture the phone looking like a clear piece of glass when looking through the camera," he said in the note. "Rather than staring down at a screen while we walk across the street or stand in line, we would be far more engaged with the world around us."

Washington Post