Augmented reality apps will allow iPhone users to combine real world with functionality from their iPhones into enhancing the experience of playing games, navigating through the cities and other gimmicks developers will think about.
Apple already has the APIs needed to develop applications with augmented reality functionality but they kept them hidden and undocumented. This is about to change with the new iPhone 3.1 software update.
As augmented reality apps use the iPhone compass they will only work on the new iPhone 3GS model. Possibly some apps will work with only the accelerometer and GPS function of the iPhone 3G but only with limited features compared to running on an Apple iPhone 3GS.
Attached to the article is a video of a future iPhone app that shows the nearest New York Subway station. The app is going to be called ‘Nearest Subway’.