Television digest with electronics reports (Jan-Dec 1959)

12 the consumer dollar than they have in the last 2 or 3 years. Industry sales of TV receivers may be expected to increase a minimum of 10% over 1958. New and improved designs now on the market, as well as replacement sales, will contribute to the increase. Top-of-the-line merchandise will account for a higher ratio of total sales in 1959 as the consumer continues to assert his preference for quality. A major factor contributing to the brighter outlook will be the stimulant of stereophonic hi-fi. Transistorized radios will continue to increase their share of the market but greater competition from Japan can be expected. ^ ^ ♦ Don G. Mitchell, chairman, Sylvania: Record breaking level of personal income and continuing downward trend in unemployment have been basic factors behind upturn in consumer confidence. We expect this confidence, and the reasons behind it, to continue through 1959. This should result in record sales for the electronics industry with significant improvement in the home electronics field. TV retail sales will approach 6,300,000 units in 1959, a 20% improvement over 1958. Home radio sales will be up approximately 5%, and phonograph factory sales will increase 14%, especially now that home stereophonic sound has moved out of the experimental category. In addition, the TV industry enters 1959 with unusually low inventories at all levels of distribution, a very healthy indication. ♦ * * * Ross D. Siragusa, pres.. Admiral: The electronics industry reached the high saturation point in consumer TV sales and experienced the natural dip that follows. We already see the start of another climb, generated by replacements and second sets in the home. When a replacement market increases to the point where it offsets the decline caused by saturation, you begin to see a healthy increase in total unit sales. We have reached that point. In 1959, the TV industry should hit the 6,000,000 mark. * * * * James M. Skinner Jr., pres., Philco: A general trend of improvement should be seen in the electronics industry during 1959. This trend should apply generally to all areas — consumer, industrial and governmental. In the field of consumer goods — TV, radio, phonographs and stereophonic high fidelity sets — we foresee a definite strengthening. Developments, particularly in transistor radios and stereophonic high fidelity sets, should account for increased sales in 1959. We do not expect color TV to be important to the electronics industry in 1959. There’s still much work to be done before color receivers of quality and reliability can be made and sold at reasonable prices. When these problems are solved, we can then foresee color TV as a good business. ^ 4: * L. C. Truesdell, sales v.p.. Zenith: We do not feel that the industry as a whole will show an important increase in TV and radio for the following reasons. We believe that the prime reason TV industry sales are off is because of the lack of consumer viewing interest caused by poor programming or, at the least, lack of exciting programs to induce consumers to buy new TV sets. It is our thought that the industry will be fortunate to show as much as a 10% increase for the year as a whole and that the greater part of this increase will have to come in the last 6 months of 1959. We see no reason why the industry should immediately show improved sales when for practically the entire year sales have been behind 1957. Radio sales will continue to be seriously affected by Japanese imports. Stereophonic sales should increase tremendously for most companies. But it is quite possible that a number of fringe manufacturers will find it hard to keep pace with this growing industry. We believe it is extremely unfortunate for the TV industry to have a new tube type injected into the industry this year. These new developments are being hurried to a point where some products may come to market before they have been field tested and proven. The new 23-in. tube will add considerably to cost of TV receivers and industry must be prepared to accept these changes. « 4: * * Chris J. Witting, consumer products v.p.. Westinghouse: Several technical improvements promise that the industries which support electronic home entertainment will do better in 1959 than they did in 1958. In TV, for example, prospects are promising for a variety of new cathode ray tubes. Their size, shape and faceplate construction will free designers and stylists so that the industry will have highly attractive cabinetry as a strong sales aid. Remote controlled TV receivers will gain in popularity. Battery-operated, transistorized TV will move substantially closer to reality. Because of all these things, we look for an increase of 10% to 12% in TV receiver sales over the 9-year low experienced this year. Stereo-fidelity was retarded greatly this year by the confusion that attended its introduction and the previous need for too large and costly cabinets. Industry-wide sale of radio receivers was off slightly in 1958 as compared with 1957, but 1959 sales should equal those of 1957, a good year. Transistorized radio will be a strong seller. TV-Radio Production Figures: TV output was 55,804 in week ended Dec. 27 vs. 110,021 preceding week and 96,647 in same 1957 week. Year’s 51st week brought total output to 4,872,114 sets vs. 6,255,610 in same 1957 period. Radio production was 206,932 (88,112 auto) vs. 319,479 (124,976 auto) in preceding week and 308,840 (97,119 auto) same week last year. Radio production for 51 weeks was 11,547,124 (3,633,339 auto) vs. 14,187,698 (5,394,286 auto) in same period last year. For week ended Dec. 20 (figures unavailable last week), TV output was 110,021 vs. 97,172 preceding week and 116,296 in same 1957 week. Radio production was 319,479 (124,976 auto) vs. 318,844 (121,784 auto) preceding week and 373,322 (118,284 auto) in same week last year. ■ New record in output by electronics industry in 1959 is forecast by U. S. Dept, of Commerce in annual outlook survey of 75 major industries. Electronics div., headed by director Donald S. Parris, expects factory output of electronics products to rise 14% above 1958, reaching total of $7.9 billion. Said survey report; “Consumer demand for radio and TV receivers, phonographs, and other consumer products is expected to recover from dip registered in 1958, while output of industrial & commercial electronics equipment will follow trends of the expanding economy.” Zenith Radio is increasing production schedules for first quarter 1959, pres. Hugh Robertson announcing anticipated consolidated sales of about $53,000,000, up 25% from record 1958 first quarter of $42,173,732. TVs alone are running 25% ahead, he stated, with an unusually large percentage of orders for console models (up 53%). Transistor portable radios are running 66% ahead.