Apple could allegedly drop its best-selling iPhone in favor of augmented reality or virtual reality devices, or so believes a technology expert.

Rumors have been rife that Apple has a VR headset in the pipeline which could potentially throw the gauntlet to the Oculus Rift. The alleged Apple headset is anticipated to work faultlessly with the next-gen iPhone 7 and is believed to be developed by a secret team of professionals working for Apple.

Now, a well-known analyst, Gene Munster of Piper Jaffray, has suggested in theory what Apple experts could potentially have up their sleeve.

On Monday, in a research note to clients, Munster laid forth a controversial theory which claims that in the next decade or so, Apple will eventually end up replacing its iPhone.

"We believe 10 years from now Generation Z will find reality inefficient," says Munster.

He adds that the mixed reality (MR) applications support for iOS Apple has up its sleeve could debut as soon as 2018.

"As a starting point, we expect in the next two years Apple will add VR to the MFi Program (Made for iPhone), which should make it easier for third parties to build virtual reality headsets powered by the iPhone, much like Samsung's Gear VR today. In the next 5 to 10 years, we expect Apple to release a mixed reality headset with the long term goal (15+ years) of replacing the iPhone," says Munster.

Munster is of the belief that VR will eventually come to replace the iPhone. Screens (as we are familiar with currently) will slowly become obsolete and be substituted by holograms that have been overlaid seamlessly with the actual world via headsets, which will possibly cost the same as the current-day iPhone.

Supporting his assertions is the fact that Apple has recently taken on board several individuals and acquired companies which are geared towards AR/VR R&D.

While the analysts' notion is laudable, he does not exactly have an enviable track record when it comes to Apple-oriented predictions.

In 2011, Munster had forecasted that Apple would be launching a TV. This was right after Steve Jobs's biography quoted the CEO as claiming he had "cracked" the requirements of creating a TV service that was better than those in existence.

Munster reasserted his claims in late 2011, early 2012, late 2012, twice in 2013 and once in 2014. While the company's set-top box Apple TV was being retailed, the legendary Apple television never saw the light of day. Finally, in 2015 Munster accepted the reality that there was no Apple television.

"It's hard to accept the reality of no Apple television," said the analyst, accepting defeat.

Whether there is any truth in Munster's estimations that Apple will eventually phase out the iPhone in favor of AR or VR devices is anybody's guess.

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