While Apple?s decision to phase out the use of unique device identifier numbers may impact the ability of marketers to behaviorally and contextually target mobile users, it could be a good thing for privacy concerns.

Apple recently said it will soon begin eliminating the use of UDIDs with iOS 5.0 and will eventually stop using them altogether. The sequence of 40 letters and numbers is unique to each mobile device and used by mobile marketers to identify and target customers as well as keep track of what actions users have taken.

?Apple clearly heard the message coming from Congress and that European Union that there is widespread concern about mobile privacy and the ability to link unique identifiers to individual users and make this information available to third parties,? said Jeff Chester, executive director of the Center for Digital Democracy, Washington.

?However, while the third party issue is a significant part of the debate, it is not the complete story -- how Apple uses the data it collects on individual users is still a privacy concern," he said.

Apple did not respond to a request for comment by the press deadline.

Out of the spotlight
Apple may have made the decision to phase out UDIDs to limit its risk around the collection and use of consumer data.

It is difficult for Apple to police the activities of all the developers participating in the iOS ecosystem, some of whom may be not be taking the proper steps to insure consumer privacy. By removing access to this information, Apple limits its risk of being part of the problem. 

"It looks like Apple is trying to distance itself from accusations that their software makes it too easy to track users through the UDID," said Jason Koslofsky, an attorney at ArentFox LLP, Washington. 

"By making app developers create and use their own identifiers, Apple no longer has a part in any related privacy issues that arise about a particular app -- at least as it relates to tracking by the UDID," he said.

"Apple can use the UDIDs for its own purposes with control over what the user opts into in terms of privacy. App developers can still track users, but they will be responsible for any privacy implications."

Other operating systems could follow suit as privacy concerns over companies? mobile data collection practices heat up.

Apple, Google, Facebook and others have faced growing scrutiny from legislators and privacy advocates over their data collection practices.

One reason for the focus is that mobile is treading new ground in how consumers communicate with one another and brands. The pressure is on companies like Apple to understand what is too little or too much in terms of the use of personal data in order to avoid governmental regulation.

One of the issues around UDID is if personally identifiable information such as a phone number can be combined with it to track users and their actions. 

Apple?s role in mobile advertising may have played into the decision, too.

?The decision here may also be motivated by the fact that they are not as competitive with their own advertising platform,? Mr. Chester said.

Companies other than Apple are trying to address both the desire for marketers to target mobile users and the need to protect consumer privacy.

For example, Collider Media says it has proprietary hyper-targeting technology that is used by advertisers, agencies and publishers to target only opted-in consumers. The company?s proprietary technology does not use UDID.

In June, Collider Media and TRUSTe announced a partnership to create an enhanced notice and choice mechanism for mobile.

Mobile gaming company OpenFeint will soon begin offering its own single sign-on identification system for social game developers later this fall to replace UDIDs on iOS. This will enable developers to access information about players who choose to opt in with just one click and gives developers access to a universal account system for cross-platform users.

OpenFeint wants to gives developers the ability to examine and analyze user behavior across games so they can improve their targeting efforts.

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York