Disclosed are a method and devices for determining a location context of a first device. The method includes receiving, at the first device, a wireless signal from a second device, determining a proximity of the first device to the second device based on the wireless signal, and determining an area inference based on characteristics of the second device and based on the determined proximity of the first device to the second device. The area inference includes a category of the area. The method also includes assigning an area label to the first device based on the area inference, and providing the area label to an application to enhance the performance of the application.