Augmented reality (AR) applications help users interact with their surroundings via mobile devices. Many of these applications; using phone’s GPS (Global Positioning System), compass and other sensors (gyroscope, accelerometer etc.), show information on the display identifying the user’s whereabouts and provide direction/navigation information. In most of the studies in the literature that utilize sensors on smart phones, data is collected on the phone and more powerful processes in the data processing is performed off-line on a computer. When the limited processing capabilities and battery capacity of the phones are taken into consideration, such a scheme may not be efficient especially if real-time performance is required. Thus, for the development of real-time applications, resource constraints on the phones should be considered.