Apple announced something that was "a light year ahead of everything else that's out there," according to Gene Munster, but it slipped below the radar.
The company announced on Monday a new augmented reality development platform, ARKit, that will bring augmented reality capabilities to hundreds of millions of devices. While most people know AR as the technology behind Snapchat Lenses and "Pokemon Go," it's much more important, according to Munster.
"AR is going to be the operating system of the future," Munster told CNBC's "Fast Money" on Monday.
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."
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."