Apple’s newest acquisition is startup SensoMotoric Instruments, a German computer vision company that develops eye-tracking tech used in virtual and augmented reality headsets and glasses.

According to news from The Verge, the acquisition of this startup could help Apple further develop eye-tracking software for future versions of the iPhone or into standalone pieces of hardware or headsets for AR applications.

It is not known exactly how Apple plans to use SensoMotoric’s talent or intellectual property. A representative released Apple’s standard statement regarding acquisitions: “Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.”

Apple CEO Tim Cook has stated that he believes augmented and virtual reality is a burgeoning and hugely impactful technology — possibly as transformative as the smartphone. And at its annual WWDC gathering earlier this month, Apple unveiled its new ARKit platform to let developers build new apps that take advantage of the iPhone’s camera and sensors to perform depth estimation and place virtual objects in real-world environments.

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