Snap shares soar after Apple demoes the company's AR tech

Posted Sep 13, 2017 by James Walker
Shares in social media company Snap spiked by 2 percent yesterday after Apple featured the company's app during its iPhone live event. Demonstrating how Snapchat's AR features run more smoothly on the iPhone X, Apple engineered excitement for the tech.
Snapchat s Bitmoji feature
Snapchat's Bitmoji feature
Augmented reality masks, face filters and animated effects have become one of Snapchat's biggest and most popular features. They got a helping hand yesterday when Apple showed off some of Snapchat's masking features during its keynote presentation from its new campus.
Business Insider reports the demonstration sent Snap's stock spiking more than 2 percent higher after Apple took to the stage. The price later settled back down and closed below its opening value. However, the peak indicates the underlying excitement many tech investors have in augmented reality. The launch of Apple's new ARKit-equipped iPhone X has been received by some as the "critical mass" point for the tech.
When the iPhone X and iPhone 8 make it to consumers, Apple will find itself equipped with one of the largest AR ecosystems virtually overnight. The company faces competition from rivals including Google, Microsoft and independent startups. iOS 11 and ARKit is likely to have the largest single audience within weeks or even days of its launch though. As customers flock to buy the new handset, they'll be given their first glimpse into augmented reality.
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Snapchat offers a different kind of experience to world-based augmented reality apps. Apple demoed Snap's face-tracking masks to illustrate the broad applications of the technology. The company showed how well the Snapchat app can follow faces on the iPhone X. The device has a dedicated Neural Engine to handle augmented reality features, offering improved performance compared to other smartphones.
Snap's app is currently one of the most popular and widely used forms of augmented reality, even if consumers don't necessarily identify it as an AR product. Apple wants more developers to build similar apps, partly to flesh out its ecosystem but also to guide consumers into augmented reality experiences.
If you're already familiar with face-tracking masks and stickers that follow solid surfaces, you might find the jump to full AR apps and games less daunting. After all, once you've worn a panda mask in Snapchat, you're probably a little more prepared to have AR animals running around the walls of your home.