detroitwalt
Superstar
http://gigaom.com/2013/09/10/with-i...mp-on-nfc-and-embrace-the-internet-of-things/Using Bluetooth Low Energy(BLE), iBeacon opens up a new whole dimension by creating a beacon around regions so your app can be alerted when users enter them. Beacons are a small wireless sensors placed inside any physical space that transmit data to your iPhone using Bluetooth Low Energy (also known as Bluetooth 4.0 and Bluetooth Smart).
For example, imagine you walk into a mall with an iPhone 5s (comes with iOS 7 and iBeacon). You are approaching a Macy’s store, which means your iPhone is entering into Macy’s iBeacon region. Essentially iBeacon can transmit customized coupons or even walking directions to the aisle where a particular item is located. It can prompt a customer with special promotions or a personalized messages and recommendations based on their current location or past history with the company. Smartphones that are in an iBeacon zone will benefit from personalized microlocation-based notification and actions.
In the age of context, iBeacon can provide the information you needed when it is needed. Just like NFC, iBeacons even allow you to pay the bill using your smart phone. The best part? iBeacon can run for up to two years on a single coin battery and it comes with accelerometer, flash memory, a powerful ARM processor and Bluetooth connectivity. Also, you can add more sensors to iBeacon to provide better context.
Why it might be a NFC killer?
iBeacon could be a NFC killer because of its range. NFC tags are pretty cheap compared to NFC chips, but NFC tags are required on each product because NFC works only in very close proximity. In theory, NFC range is up to 20cm (7.87 inches), but the actual optimal range is less than 4cm (1.57 inches). Also, mobile devices need to contain a NFC chip that can handle any NFC communications. On the other hand, iBeacons are a little expensive compared to NFC chips, but iBeacons range is up to 50 meters. Not all phones have NFC chips, but almost all have Bluetooth capability.
Why it is so affordable?
Let’s go back to Macy’s. The average area occupied by a Macy’s store is 175,000 square feet, which is 16,258 square meters. iBeacon’s range is 50 meters (typical Bluetooth range), or 2,500 square meters. So a typical Macy’s store would need 7 iBeacons.
Estimote, a company which just launched to sell beacons, is taking pre-orders at the price of $99 for 3 beacons. The range of Estimote’s beacons is 50 meters, but the recommended range is 10 meters. If you go with the recommendation, you need 1 Estimote beacon for every 100 square meters, which would cost you about $5,000. If Macy’s wanted to add NFC tags (each at 10 cents) to all its products to send information to phones, it would cost $1,000 for 10,000 products, $10,000 for 100,000 products and $100,000 for 1 million products. NFC may not be needed on all products, but this will give a rough idea on how much it could cost.
Now we know Apple's lack of support for flash led to its demise and everyone was expecting NFC to explode once Apple eventually embraced it. How many people have you seen using their phone to pay for something?
With the iphones built in user base iBeacon immediately will become attractive to retailers. That doesn't mean an automatic W but its a good place to start