(Pocket-lint) - News of Apple's augmented reality headset has been popping up for a while now. The latest rumour is that Apple is working with Valve on it.

A report by DigiTimes suggests that the tech giant with partnering with the creator of the popular digital video game storefront Steam on its upcoming device. This makes a lot of sense as Valve has already worked with partners in the past on virtual reality tech and recently released its own high-end VR headset

Last month industry analyst Ming-Chi Kuo also suggested that Apple may have been working with other brands on its AR headset, so this new report confirms that. 

The report states that:

"Apple reportedly has partnered with US game developer Valve to develop AR head-mounted display devices, which may be released in the second half of 2020 at the earliest, with Taiwan's ODMs Quanta Computer and Pegatron said to handle the assembly job, according to industry sources.

Apple will cooperate with Valve on AR headsets rather than VR devices, as its CEO Tim Cook believes that AR can make digital content become part of the user's world and will be as popular as smartphones with consumers. This has also promoted Apple to step up the development of AR software by recruiting more engineers for graphic design, system interface and system architecture segments."

MacRumors also notes that this isn't the first time that Apple and Valve have worked together. Both companies partnered in the past to get Valve's SteamVR software working on macOS with eGPU support.

It's still not entirely clear what the final product is going to be, though the latest rumours hint at it being designed to work with the Apple iPhone. Especially as recent internal builds of iOS 13 included references to the headset and the related apps. 

Writing by Adrian Willings.