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Symbol’s Goal: Win With High-Performance RFID Solutions

Symbol is also looking to leverage its history of working with third parties to develop solutions for specific industries. By partnering with EPC Solutions for software that assigns and manages EPCs, and with Zebra Technologies for a printer-encoder, it has created a package of products enabling companies to meet their customers’ tagging mandates.

Lazo says Symbol will also work with other vendors to create solutions for specific industries. “Our reader architecture has been upgraded to make it more partner-friendly,” he says. “That is, it will be easier for partners to develop native applications that can run on our readers, which enables us to develop solutions for specific verticals.”



One way Symbol has made it easier for others to develop applications to run on its interrogators is by making Windows CE the operating system for the XR400 (see Symbol Puts Windows in Reader). Symbol already has a community of software developers among its partners that can add value to interrogators by writing applications. Symbol is also creating new application program interfaces (APIs) and development tools for partners to encourage the development of new applications that could run on its readers. The new APIs will be backward-compatible with the APIs currently used in its interrogators.

At the same time, Symbol wants to develop more relationships with distributors and value-added resellers that can sell its products. It has already certified more than 75 partners as official resellers. The long-term goal is to sell 75 to 80 percent of its RFID products through these partners, as it does with other Symbol products. Today, however, Symbol sells most RFID systems directly to customers, and that is likely to be the case for the next couple of years, as the market matures. In fact, Lazo says Symbol will expand its internal RFID sales efforts to Europe, Asia and Latin America.

Moving Forward
Symbol is the dominant player in the market for bar code scanners, but it's not clear yet whether it can take advantage of its UHF RFID expertise, size advantage, support organization and partner network to dominate the RFID market. One company potentially standing in its way is Intermec Technologies, an historical competitor in the bar code market. Intermec also plans to invest in its tag and reader product line; it has significant UHF RFID intellectual capital, a strong services organization and a significant customer base.

The rivals had planned to wage their first battle in court over intellectual property, but Symbol instead chose to come to terms with Intermec on use of Intermec RFID patents (see Intermec, Symbol Reach Major Agreement). The two firms have not yet settled all their outstanding grievances, but Lazo says they are talking. There is no timetable for a resolution.

The key for Symbol in the short-term will be getting Gen 2 tags and interrogators to market quickly and consistently, proving those products can outperform others and leveraging all the advantages Symbol has as one of the largest players in the market. John Bruno, for one, believes it can achieve those goals.

“We’re pleased with the progress we’ve made over the last year in bringing to the market a full suite of high-performance RFID products that have enabled us to differentiate ourselves from our competitors and successfully put RFID to work for our customers,” Bruno says. “As we build on our market share leadership position and our Gen 2 products gain traction while entering new vertical and geographic markets, 2006 promises to be another exciting year.”

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