Beacon market heats up as Apple (AAPL) iBeacon competitors emerge

Apple Inc.’s (NASDAQ:AAPL) iBeacon technology remains “king of the hill” as far as beacons are concerned, but its success is spawning many imitators who are taking the devices in intriguing new directions. Though none of these businesses present any threat to the powerful Cupertino enterprise, they present an interesting portrait of how Apple acts as an innovation trigger, opening new tech fields where others then pursue the possibilities that branch off in all directions from the idea’s main “trunk.”

Some of the more notable examples include:

Apple

  • MTI, a Japanese company, offers a beacon system that eschews Bluetooth Low Energy (BLE) connections such as those used by iBeacons. Instead, their beacons transmit positioning signals via 20 kilohertz sound, too low for human ears to detect but easily picked up by smartphone microphones even in noisy conditions. This helps to avoid “Bluetooth congestion” caused by too many beacons operating in a confined area.
  • Somewhat less precise, i2Cat uses light emitting diodes (LEDs) to provide location services by signaling a smartphone’s ambient light sensor. This technique cannot pinpoint the iPhone’s location to less than 3 feet, but it can furnish sufficient location information for less demanding applications.
  • Gimbal Geofence works more like a traditional iBeacon, relying on BLE, but adds encryption to the beacon scheme. This blocks out all apps from using a store’s beacons except for the store’s purpose-designed apps themselves. Several different variants on beacon design are also included in Gimbal’s product range, including those focusing on proximity performance, geofencing, and “interest sensing” which tailors the beacon experience to the end user’s individual interests.

Though the smaller enterprises have come up with a smorgasbord of fascinating beacon variants, and even some technologies that surpass the utility of the iBeacon itself, none of these startups are likely to even come close to dislodging Apple (AAPL) from its commanding position in the world of informative geofencing.

Tim Cooks’ firm has already secured the business of the biggest players, such as American Airlines and Major League Baseball. After investing in iBeacons, these companies are unlikely to discard their sunk costs for any alternative, no matter how plucky and ingenious the David attempting to take on the Cupertino Goliath. Furthermore, Apple (AAPL) offers the invaluable advantage of its fully integrated, far-flung “ecosystem” – as noted by American Airlines, the decision to use iBeacons was easy, since approximately 85% of the aviation company’s customers use iOS-enabled mobile devices.