This paper is an extended abstract of the doctoral thesis [1] which attempts to fill the knowledge gap between user understanding and available Augmented Real- ity (AR) technology, a result of the general lack of user studies in AR and high-pace technology-driven AR development. The thesis pursues this goal by: (i) reviewing per- ceptual issues that relate to handheld AR in order to identify usability issues; (ii) review- ing handheld AR system utility in order to propose utility improvements; (iii) conducting empirical user studies to explore identified usability issues; (iv) designing, building and evaluating solutions that will enhance handheld AR utility and usability.
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