September is the glorious month when iPhone OS 3.1 will be available and that’s when you can expect augmented reality apps to be available in the App Store. You could certainly do well without augmented reality applications but since they become more and more frequent, why not take advantage of them?

How does exactly augmented reality work? Well these apps will use the camera of your phone to offer you information which overlays onto real-world objects. Unfortunately in order for these apps to work you will need an iPhone 3GS. The iPhone 3G lacks a compass and therefore it will simply not do.

Just check out the video above to get a glimpse of what augmented reality can do with your iPhone 3GS. Excited yet?

via LAT