Forrester: ''the price of RFID tags won't drop to 0.05 in the next eight years''

March 15, 2004

Forrester research reports:

The initial hype around the potential for adding an RFID tag to every item in a supermarket persuaded RFID manufacturers to target the retail supply chain. Retailers and CPG manufacturers bought into the idea that they could use RFID tags economically if they cost 0.05. But complex manufacturing techniques, a costly assembly process, and a lack of demand means the price of RFID tags won't drop to 0.05 in the next eight years.

The Forrester model forecasts that RFID tag prices will decline, on average, only 9% year on year. To find a cheaper alternative, CPG manufacturers and retailers need to minimize tag functionality, target simple usage scenarios, or wait for a manufacturing breakthrough.

(from the published Excerpt of the article: Exposing The Myth Of The 5-Cent RFID Tag - Why RFID Tags Will Remain Costly This Decade, Forrester Research, Inc.)


Posted by andersja

Comments

sir,
we want name companies providing rfid tags.
please mail me.

Posted by: mehul at August 13, 2004 02:14 PM
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