Apple deploys iBeacon system to gather data from shoppers in its stores

iBeacon system tracks consumers' spending behaviour and location via Bluetooth

PUBLISHED : Sunday, 08 December, 2013, 7:31am
UPDATED : Sunday, 08 December, 2013, 7:31am

Apple used freshly deployed iBeacon sensors to virtually - and personally - accompany iPhone, iPad or iPod-toting shoppers through its stores in the United States on Friday.

Code woven into Apple's newest iOS mobile operating software lets the sensors tell when one of the California company's gadgets is nearby in-store and then fires off messages about deals, products or other relevant information to draw a potential buyer in.

For example, iBeacon could chime in about iPads when someone is checking out the Apple tablets, or weigh in on iPhone covers or ear buds when a shopper pauses at an accessories display. The sensors "push" information to shoppers' iPads, iPhones or iPods using wireless Bluetooth technology.

"We're really excited about what iOS developers will be able to do with iBeacon, a technology we introduced with iOS 7 that uses Bluetooth Low Energy and geofencing to provide apps [with] a whole new level of micro-location awareness, such as trail markers in a park, exhibits in a museum, or product displays in stores," Apple said.

Apple maintained that the system gathers no data back from devices and merely provides information at seemingly appropriate moments in its stores.

Retailers are increasingly gathering data from smartphone users in shops and tracking their locations and buying habits in an effort to boost sales and efficiencies. The practice is drawing scrutiny from privacy activists as the market for the technology shows sizzling growth.

"I can't even count the number of start-ups in this field," said retail analyst Leslie Hand.

Hand said it was difficult to estimate the value of the market because it was so new, but retailers were anxious to use such data "so they have as much information about the customers in the store as they do about the customers shopping online".

By tracking users' smartphones and their unique identifiers, retailers can tell how often a customer visits, how much time they spend in a location and other data. With this, retailers "can better understand customer-buying behaviour to market better, and possibly make an offer to them," Hand said.