Apple Inc. (AAPL): The iBeacon Opportunity Is Huge

“Apple is absolutely the sleeping giant in the payments world,” Denee Carrington, an analyst at Forrester Research, told The Wall Street Journal. “They have the capability; they just haven’t tied it all together.”

And there’s a second, less obvious way Apple could monetize iBeacon.

All that data on what customers are doing – where they browsed, what they bought, whether the customized ads that were beamed to the customer in-store produced any sales – is marketing gold. It’s the sort of data that can help focus marketing campaigns, and companies would be willing to pay a lot for it.

“The concept is straightforward. An iBeacon sends out its ID constantly. When an appropriately configured smartphone is within range, it sends the ID into the cloud, which sends back the appropriate data. It fits into businesses looking to monetize Big Data on customers,” UBS analyst Steven Milunovich wrote in a recent note to clients.

Finally, because Apple has been planning this for years, all of its mobile devices include BLE and work seamlessly with iBeacon, while only about one-third of Android devices do. As iBeacon services become more popular, that advantage also could help sell a few more iPhones.

Any way you slice it, iBeacon figures to be a major catalyst for AAPL stock.

Money MorningWritten By David Zeiler From Money Morning

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