- Augmented reality, or AR, will likely figure into Apple's next big product, says ex-Apple software engineer Ken Kocienda.
- "You can take your phone and you could point its camera at something in the world" and get information delivered to your screen, says Kocienda.
- AR is the technology used in Nintendo's popular mobile game "Pokemon Go."
The next smash-hit product by Apple AAPL , which could push the stock far above its $1 trillion market value, will probably surround augmented reality, former Apple software engineer Ken Kocienda told CNBC on Tuesday.
"You can take your phone and you could point its camera at something in the world," said Kocienda, the developer of the on-screen keyboard on the original iPhone and the autocorrect feature.
Then it would "tap into the network — the hardware and software — and would all collaborate" to give information to users' screens, he added.
Augmented reality, or AR, has become a major focus for technology companies , including Apple and Alphabet GOOGL 's Google, which are racing to release AR tools to attract software developers to their platforms.
AR allows viewers to see information superimposed on their surroundings via their smartphones or other devices. It's the technology used in Nintendo's popular mobile game "Pokemon Go."
According to Bank of America Merrill Lynch, Apple AAPL 's move into augmented reality could boost iPhone and App Store sales, resulting in as much as $8 billion in revenue for the tech giant.
Kocienda, who spent 15 years at Apple, including a stint as the principal software engineer for the iPhone, said on " Squawk Box " there's a sort of "ebb and flow" to progressions in technology and the paradigm shifts often take a while.
Despite the time it takes for innovations, Kocienda said, Apple still has the ability command prices for its products that other companies cannot.
He mentioned the success of the Apple Watch, which was introduced in 2015 and carries a price tag of around $300 to $400 for its most recent model.
Last quarter, Apple AAPL reported $3.74 billion in revenue from its " other products " division, which includes sales of Apple Watches, iPods and home products.
Last week, Apple announced it will reveal its latest lineup of products on Sept. 12, which will likely include a new line of iPhones and a new Apple Watch .
Kocienda joined CNBC following the release of his book "Creative Selection," which offers a behind-the-scenes look of Apple's creative process during the Steve Jobs era.
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