Augmented reality differs from virtual reality as it superimposes a computer-generated image on a user's view of the real world, instead of creating a fully immersive new world.
The most popular example of the technology has been seen with Pokemon Go, which saw computer generated Pokemon appearing in the real world.
This isn't the first time the company has been rumoured to be entering into the world of AR, with Apple's chief executive Tim Cook being vocal about his interest.
"[AR] gives the capability for both of us to sit and be very present, talking to each other, but also have other things - visually - for both of us to see," he told ABC News last September.
"There's a lot of really cool things there."
Cook went onto say the "present" nature of AR made it more commercially viable than VR.
"Virtual reality sort of encloses and immerses the person into an experience that can be really cool, but probably has a lower commercial interest over time," he said.
"Less people will be interested in that."
Additionally, Apple has filed a number of AR patents with the US Patent and Trademark Office, including a "transparent electronic device".