Apple CEO Tim Cook appreciates the latest progress of virtual reality, but the leader of the iPhone manufacturing company bets his money on upcoming augmented reality.

Sony recently rolled out the PlayStation VR, and VR competition is strong when considering HTC Vive or Facebook's Oculus. However, Apple believes that the future is in AR, which features way less limitations when compared to VR.

In an interview, Cook notes that there is "no substitute for human contact."

"You want the technology to encourage that," he says.

According to Cook, the applications of VR, albeit interesting, are nearly as broad-reaching as AR can set out to be. He acknowledges that it will be a lengthy process, but affirms that the wait is worth it. The helm of Apple also believes that VR can yield lower commercial interest looking at the bigger picture in the long run.

Apple made a staple out of keeping mum about its developing new products, but Cook has a history of praising AR. There is a high chance that we will see AR features packed in the company's products, especially into upcoming iPhone models.

Keep in mind that 2017 is the year when the company celebrates 10 years of iPhone, and it could be a symbolic moment for Apple to start its AR journey. Take this speculation with a grain of salt until official confirmation lands, though.

According to rumors, Apple is already baking some AR experiences.

The company purchased a few firms with know-how in the field, such as Faceshift, Metaio and PrimeSense.

A number of patents also suggest that Apple is dabbling into AR and VR technology. What is more, the company recruited talent from the AR field, namely Zeyu Li of Magic Leap, Doug Bowman from Virginia Tech and Yury Petrov of Facebook Oculus.

Another interesting thing is that Cook has a penchant for teasing upcoming products. For example, he mentioned the potentials of the wrist 12 months before his company unveiled the Apple Watch.

Keep in mind that the embedded hardware in the iPhone 7, the second-gen Apple Watch, and the AirPods hints that the products are future-proof when AR is concerned. The gadgets have spatial awareness and can easily holster AR features.

"We might ... have a more productive conversation, if both of us have an AR experience standing here, right?" Cook touted during the interview.

Are you excited at the prospect of having AR features embedded in the iPhone 8? Let us know in the comments below.