Apple (AAPL) - Get Apple Inc. (AAPL) Report may commit over 1,000 engineers to further its push into the augmented reality space, according to UBS analyst Steven Milunovich. 

The tech titan may be utilizing the engineers for a project in Israel, focused on augmented reality, Milunovich wrote in a note to clients on Tuesday, citing industry sources. 

"Our work suggests that AR could be the next major innovation from Apple and that its competencies could make the company a winner," Milunovich noted. "Augmented reality is an area where Apple could leapfrog competition in providing a superior user experience. This could result in sustained iPhone retention rates and more switchers."

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