14 June 2005

RFI tag prices to fall

The following article is excerpted from the 14 June 2005 edition of “The Journal of Commerce”.

The cost of radio frequency identification tags should fall later this summer, creating new opportunities for retailers and their vendors to streamline their supply chains.

A move by global RFID specialists to bring standardization to radio frequency technology is expected to produce results in the third quarter of this year. These second-generation or "Gen 2" standards are expected to attract global tag makers to the market, resulting in increased competition and lower prices.

The first generation of RFID standards was a step in the right direction but it was too U.S.-centric, said Scott Medford, vice president-RFID at Intermec Technologies Corp.

The Gen 2 working group ratified new standards last December and submitted them to the International Standards organization in January. A global market for the standardized RFID tags should begin to develop soon….

Medford estimated that the average cost of a passive RFID tag today is 27 cents. With multiple producers expected to enter the market, the cost will decrease "dramatically," he said….