From the FA:

> Cook has in the past expressed his personal excitement for augmented reality and has hinted that Apple is working on AR/VR products. The company's first AR/VR product, a high-end headset rumored to be called "Reality Pro," is expected to be announced as soon as January.

It's not that far away either. Once you get a projection on top of your real view, adding 3D elements and hiding that view is just an incremental update...

Besides Apple is already known to be working on a VR headset project for 2+ years now...