Augmented reality is when content interacts with layers of information provided by the real world. In this case, PresseLite designed an iPhone application that delivers information based on what the iPhone camera is staring at in the streets of Paris, France.
For example, when running the application, the camera reports to the GPS what you are looking at and the PresseLite application will report restaurants, taxi stands, retail stores, and coffee shops are near you. PresseLite’s application is called Metro Paris Subway.
Surprisingly PresseLite is selling this application for only $0.99. Based on first-hand experience, I can tell you that designing this type of application is extremely complex. Had I created an application like this, I would definitely sell it for more than $0.99.
The augmented reality applications only work on the iPhone 3G S because it also needs the compass feature to determine your exact location in Paris.