Apple is using the term Augmented Reality to describe the combination of camera, 3D graphics and motion detection to view the world through your iPhone and see additional added elements. This can be used for practical purposes or entertainment.
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Thanks for this video. I am quite excited about AR and keep thinking of the practical uses it can be put to, besides entertainment. In particular, sharing an object and its GPS location is something I was hoping for, so that the other person gets to see it/ interact with it on their phone.