(Length: 16 pages)
February 23, 2004
Exposing The Myth Of The 5-Cent RFID Tag
Why RFID Tags Will Remain Costly This Decade
by Charles Homs
with David Metcalfe, Sonoko Takahashi
Executive Summary (This is a document excerpt)
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.
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TABLE OF CONTENTS |
NOTES & RESOURCES |
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WHAT IT MEANS
ALTERNATIVE VIEW
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Forrester interviewed 10 user and 31 vendor companies, including: Cross Point, EM Microelectronic-Marin, FlexChip, IBM, Infineon Technologies, Microchip Technology, Philips, PolyIC, Sovereign Tracking Systems, STELLA Electronics, STMicroelectronics, TAGSYS, Texas Instruments, TrenStar, Trolley Scan. Related Research Documents
December 9, 2003 Forrester Brief
December 2003 Forrester Report
July 11, 2003 Forrester Brief |
RFID Tag Manufacturers And Users Have Contrasting Views
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