Parker is completely plush with no batteries, cameras, or other electronics embedded inside. Instead, children can use wooden accessories to interact with it via an iOS device.

Accessories include a thermometer, stethoscope, x-ray bibs, a spoon, and a medicine bottle. The toy is designed so kids can play doctor and learn Science, Technology, Engineering, Arts, and Math skills through puzzles and games. Through the accompanying app, kids can see its guts and bones. Each time an ailment is cured, Parker's happiness level is increased, unlocking additional AR experiences, viewed through a "magic camera" on the app. AR experiences include things like building an undersea garden or a mushroom forest.

Kids can also give Parker a medical checkup, using 3D touch to help Parker take deep breaths and test lung capacity. By sqashing stomach germs, kids can help Parker fight a stomach bug.

Sources:

https://www.theverge.com/circuitbreaker/2017/10/4/16417612/ar-teddy-bear-parker-apple-seedling