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iBeacon is a technology that allows you to add real world context to smart phone applications. Based around Bluetooth LE, part of the new Bluetooth 4.0 standard, it’s a way to provide basic indoor navigation and iBeacon has been integrated into iOS 7 both inside the Core Location and the Passkit frameworks to enable indoor micro-location and geofencing.
However it isn’t about location, it’s about proximity. Your iPhone—or now even your Android phone—can now alert applications when you are approaching or leaving a location with an iBeacon. It can also report an estimate of your proximity to the iBe, but you should be aware that the closer you are to the beacon, the more accurate the estimate of proximity becomes. It’s fairly simple to build your own iBeacon—either using a Raspberry Pi or using a Bluetooth LE board like the Red Bear Labs BLE Mini board—and there are some people taking advantage of that to turn a quick profit.
For instance Radius Networks is selling a “iBeacon Development Kit” which consists of a Raspberry Pi, a Bluetooth USB dongle, and an 8GB SD Card. Costing around $45 when bought separately at full retail price, they’re selling it bundled together for $100. That’s quite a markup, especially since they won’t be buying the components at retail, with very little added value over buying the parts separately and following fairly simple instructions to build your own.