Apple iBeacon Hardware Plan Could Expand The Reach Of Retailers

In an exciting turn of events, Apple is planning to develop hardware to complement its iBeacon technology, potentially making the location-awareness technology available to a wider spectrum of retailers.

The Cupertino, CA-based company wrote in a Federal Communications Commission filing that the product was tested jointly with China’s Audix Technology over a 14 cay period from April to May.  Until now, only third parties have offered iBeacon-powered hardware.  This development could dramatically redraw the marketing landscape with the potential to reach a massive audience in a wide variety of sectors.

“It’s a great coup for mobile marketers if Apple can make this technology more mainstream for not just large retailers but across verticals,” said Sheryl Kingstone, research director for the Boston-based Yankee Group consulting firm.  “It could ease the friction to adoption,” she continued.  “It’s irrelevant who makes the device.  There are many third-party manufacturers.  The real importance is what businesses can do with the low-power, low-cost transmitter that enables a more immersive communication experience across many industries, not just retail.”

The iBeacon technology has created new opportunities for businesses to interact with their in-store customers.  It is a portable, low-cost transmitter that alerts iOS 7 devices of its presence, with the ability to send push notifications to Apple iPhones, iPads and iPods.  The technology uses Bluetooth Low Energy (BLE), which can establish a region around an object.  However, based on the FCC filing, it is unclear how the new hardware could be marketed.  Will it replace the third-party products or be sold directly to retailers?  Another possibility is that the iBeacon could be used as part of the rumored plan by Apple to create products for connected homes.  This concept would fit in perfectly with the company’s recent unveiling of HomeKit software for iOS8, which integrates monitoring and control of lights and appliances in the home.

An interesting aspect of this development for marketers is the many ways that iBeacon can be used to interact with in-store shoppers.  Although ecommerce has grown exponentially over the past few years, a large percentage of a consumer’s shopping-related time and money is still spent inside of actual stores.  Additionally, with the increasing availability of Wi-Fi in stores, malls and other public places, the role of mobile in these types of marketing initiatives is on the rise.  Stores could offer communication options that are highly relevant to in-store consumers, such as indoor maps and mobile search capabilities.

Yankee Group’s Sheryl Kingstone explains that 84% of businesses are interested in mobile proactive communications, illustrating the incredible growth that is likely to continue in the coming period.  “iBeacon solutions can help businesses gather contextual information such as individual user’s location, but it’s also important to track stated preferences, behavior and social interaction,” said Kingstone.  “By capturing this data, businesses can gain analytical insight while delivering a customized experience.”