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October 24, 2004 10:45 PM PDT

RFID cell phones take shape at Nokia

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SAN FRANCISCO--Nokia is at work on a cell phone that uses controversial microchips designed to store product information and signal their location.

Radio frequency identification (RFID) technology is wowing warehouse operators and some retailers because of how easily product information stored on the chip can be transferred. Nokia said Sunday that delivering product information to a mobile device using RFID can extend the technology "beyond the supply chain, and into customer service, merchandizing, marketing and brand management."

For instance, retailers could put RFID-embedded "touch phone here" signs on store shelves to send a coupon to the phone, or put the same signs at checkout stands to instantly transfer personal information stored on the phone in order to complete a warranty, Nokia Director Gerhard Romen said.

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