The new iPhones have a distance sensor called Lidar and a bunch of software which basically scans and builds a 3D model of your environment on the phone, which gets very accurately overlaid on top of the real world.
PS: see how the person is standing IN FRONT of the code? That’s being done with real time occlusion, as the Lidiar sensor detects the person being closer to the phone than the wall, so it draws a mask in real time to hide the falling code.
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