So tell me, what's to keep someone from using the depth information on the front camera, using a Google Dream VR setup (but instead of covering the back of the iphone, use that sensor for the world around them) and then projecting poor man's AR with today's world. If the answer is wrong sensors, they can fix that next year, and do it at a size and a scale that no one else can touch.
You just took a hardware problem, and made it a software problem.
The fact that Peter Jackson has evidently jumped ship to ARKit is a pretty big sign that Apple is going to get there first.
Apple's focus on ML on the phone directly, not requiring a server at the RTT latency is perfect for this application. They have hardware no one can touch, and do full stack miniaturization like no one else. Plus they also attract "lifestyle" buyers.