RFID Talk Blog

Avery’s predicted revenue increase could translate into 1B tags sold next year

Much was made of the recent Wall Street Journal article that predicted Avery Dennison’s RFID revenue could triple from $50 million in 2010 to $150 million next year.

ODIN technology’s Bret Kinsella just penned an interesting blog piece, translating that revenue into actual tag volume.

At the industry average tag price of 12.35 cents, cited in ODIN’s recently published RFID Tag Pricing Guide, Avery’s revenue calculates to over 400 million RFID tags sold this year. Now, if Avery’s RFID sales do in fact triple next year, assuming a predicted price drop of only 5% in 2011, that would generate over 1.25 billion tags sold.

According to Kinsella’s math, if revenue reaches $100 million and prices drop by 10 percent, the total volume would still be 900 million.  One billion-plus annual tag sales seem certain no later than 2012, and with the recent pushes from Wal-Mart and the Department of Defense, we are probably looking at numbers closer to two billion for that year.

Click here to read Kinsella’s full blog.

Click here to download the ODIN RFID Tag Pricing Guide

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