We know from Tim Cook's remarks that Apple dabbled in virtual reality systems before deciding that augmented reality is the way to go. As opposed to virtual reality which completely immersed you in computer-generated environments, augmented reality overlays computer imagery on live video feed of the real world, enhancing or augmenting the images of your real-life surroundings.
Apple's latest patent award for augmented reality maps that surfaced today in the database of the United States Patent & Trademark Office underscores the company's commitment to augmented reality technologies.