High cost will limit the popularize of RFID application

RFID tags usage has reached 200 million in total around the world. The most common application is based on retail logistics project by Wal-Mart, Metro and other big retailers. Turning to China, there are thousands of RFID application projects currently being carried out, but except few government lead projects, the demand for RFID tags for most of those project can only reach few thousand pieces in average.

The reason for this is mainly due to the expensive RFID tag cost. Under normal circumstances in China, the RFID tag cost more than two US Dollars is for the usage of military, biotechnology and medical care; RFID tag cost below one US Dollar is mainly used in transportation, warehousing, packaging and so on. Higher cost is the big factor which RFID application has not use in a wider range. The small and medium size enterprises can not afford lose of profits, even they fully understand all the advantages of RFID application.