New iBeacon lights way in Apple stores

254 locations roll out shopping guide

NEW YORK - GPS will tell a person how to get to the nearest Apple store. With iBeacon, Apple hopes to guide shoppers around once they’re inside, whether it’s to pick up an order, upgrade to a new iPhone or shop for a pair of headphones.

On Friday, Apple Inc. began using the technology at its 254 U.S. stores to send messages about products, events and other information - tailored to where a person is inside the store, provided they have downloaded the Apple Store app and have given Apple permission to track them.

Using the iBeacon feature, the app will notify a user whether the computer he ordered is ready to be picked up, for example. All he needs to do is then show a clerk a screen with the order number, and the clerk will get it for him. Walking by an iPhone table? A shopper may get a message asking whether he wants to upgrade, check upgrade availability and see whether he can get money for trading in an old phone.

The company demonstrated the technology to The Associated Press last week at its busy, 24-hour Fifth Avenue store in New York City.

At that store, Apple has installed about 20 iBeacon transmitters, some of which are simply iPhones and iPads, which come with the capability as part of the iOS 7 mobile software released in September. The transmitters use Bluetooth wireless technology to sense a shopper’s exact location. That’s not possible with GPS, which doesn’t work well indoors and isn’t good at distinguishing between locations that are just a few feet apart.

The beacons can be adjusted to specific distances, so a user may get some notifications regardless of where he is inside. Others will come only when a user is standing at a particular aisle, wall or product demo table.The store can also send out notifications about deals or coming events.

The implications go beyond Apple stores. One day, commuters might get information on subway delays as they stand on the platform, while museum visitors might get details on the painting they are standing in front of. Other retailers, of course, will also be able to offer special deals or track which aisle shoppers visit most.

In-store location technology does raise privacy concerns, though many shoppers have shown a willingness to be tracked if there’s something in it for them.

Major League Baseball already plans to use the technology next year to customize fans’ experiences at its ballparks, provided they download the At The Ballpark app to their iPhones or iPads and have iOS 7 installed. In a demo earlier this year, MLB officials showed how the app can offer special features based on users’ locations in a stadium, such as coupons in the souvenir shop or a video that plays near landmarks.

Apple is not the first to offer in-store location technology. An app called Shopkick, for example, sends users discounts when they enter Macy’s, J.C. Penney and other stores. But Apple’s entry into micro-location puts the nascent technology into the hands of thousands of developers and broadens its reach considerably.

Apple said iBeacon provides 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.”

To take advantage of this, a user must make sure he has Bluetooth enabled on his phone and has downloaded the Apple Store app.

Then, a user will have to agree to let Apple track his location and to receive notifications while in the store. It’ll only work if a user says yes to both as he sets up the app.

The app will automatically switch to “in-store mode” once a user enters. Even without iBeacon, the app already lets users scan and pay for some items using their phones, get customer service help and reserve products.

Location tracking does raise privacy worries. After all, shoppers may not want their every move watched and recorded inside a store. Apple, however, said that it does not collect information about shoppers inside its stores. But other companies using iBeacon could, as long as people who download their apps agree to be tracked.

Business, Pages 19 on 12/09/2013

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