May 03, 2006
The 5-cent-per-tag price barrier shattered
Israeli RFID systems provider SmartCode has announced a pricing breakthrough this month. It says that its RFID inlays are available at the milestone price of five cents per tag. There is a catch though. Customers must buy at least 100 million RFID inlays to benefit from the new pricing policy.
For quite some time, analysts have been saying that if RFID tags are priced below the Five cents mark, they can then effectively challenge bar code. Retailers may also try item level tagging on a huge scale. SmartCode says that it in talks with at least three customers.
For customers not in position to buy in such large volumes, SmartCode quotes 7.2 cents per tag for orders of 10 million units, and 7.5 cents per tag for orders of one million units. Recently, Avery Dennison quotes 7.9 cents per unit for its AD-220 Gen 2 inlay for orders of at least one million units.
Via DC Velocity
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