Munster was a top Apple analyst before starting venture firm Loup Ventures, where he invests in technology like augmented reality. He called the AR platform — which was announced at the Apple Worldwide Developers Conference in San Jose — "revolutionary."
"The iPhone is going to be the AR device of the next five years, but eventually it's going to become some wearable," Munster said. "This ARKit will allow developers to build rich AR experiences far beyond what we've experienced in AR today."
To be sure, Apple is not the only tech giant with augmented reality ambitions. Facebook has also said it wants to be the augmented reality platform of choice.
While few of Apple's individual software platforms — like Apple Music — have been a breakout success, the broader power of platforms like the App Store makes a difference, Munster said.
Apple is also in a unique position since it makes the cameras and hardware that many consumers may eventually use for AR. That's important because Apple's next iPhone is expected by some analysts to create a "supercycle" of sales.
It all comes as shares of Apple's stock have been coasting off a recent all-time high in May.
"I think the stock will continue to move higher over the next year," Munster said. "I think it probably will sell off just before the new phone comes out. It has to. So many people have made a lot of money in this trade."