In the context of the IoT business case, a fast, protected, and seamless transfer of data between two devices is key. Yet, two differing technologies are competing for the airtime market share (spectrum for communications and connectivity): NFC and iBeacon.
NFC stands for Near Field Communication and its technology is based on analog devices. This type of technology is well developed and has a large range of industrial applications. However, it does have its limits, which include some functionality limitations with respect to security and it may sometimes be lacking in the area of transmission precision. Finally, not all mobile devices (mobile phone, portable computers, etc.) have a NFC device integrated in them, which would help enable the immediate adaptation of this technology by a large number of consumers.
iBeacon technology was developed by Apple and was launched in September 2013. It allows Android based devices to send and receive communications through the bluetooth sender. The technology is push based and allows transmitters to automatically connect to its ecosystem when its associated device is within a certain range of the sender. The iBeacon technology is more precise than the NFC technology. The application’s main use is expected to occur in the M2M (IoT) business sector. Its ultimate utilization could occur in connection with publicity related matters in shopping malls where customized services could be published.
The possible applications for both technologies are vast. For investors its important to focus on the underlying purpose of the business rather than on the technology used at present. While the NFC technology is cheap and bullet proof for industrial applications, the iBeacon technology could be the device upon which the next broader based chip-set will be built-on. Actually, the presnt iBeacon technology is limited to Android based applications and for the time being it lacks end-provider support.