Television digest with electronic reports (Jan-Dec 1952)

V with Electronics Reports WASHINGTON 5, D. C. • TELEPHONE STERLING 1755 Trade Report February 2, 1952 3 HOW THE TV TRADE WINDS ARE BLOWING: The calm prevailing in TV-radio trade circles this week — with production steady, demand reasonably firm, hopes high for early end-of-f reese — was shaken by news of Tele-tone bankruptcy (see Topics & Trends). That gave rise to rumors of others in trouble — unverif iable. And the many new alignments of distributorships being currently reported conduced to belief that some sort of shaking down process is under way. Smaller private-label manufacturers, who might be expected to be first to take beating in such a highly competitive business, don't seem to be suffering much, however. In fact, they're cashing in on ability of their sellers to advertise low prices while brand-name leaders confuse the market (and annoy the retailers) by their quotations of prices with or without taxes and/or warranties. At wee k's end RCA repriced 4 models downward, but stuck to its decision to quote single price embracing tax & warranty; it extended picture tube warranty to full year, retained 90-day warranty on parts & receiving tubes. Repriced leaders are RCA's 17-in. Colby table (17T150), down from $260 to $230; 17-in. Glenside table (17T151), $280 price now including base formerly offered separately at $18.95; 21-in. Selfridge table (211159) , $379.50 price now including base; 21-in. Meredith open console (21T165) , down from $425 to $399.50. These are all new models introduced at Chicago mart (Vol. 8:1), on which shipments began in mid-January. There were no other changes, except for extension of CR guarantee. * * * * The top manufacturers all say their business is good-to-excellent , but with some spotty wholesale-retail trade. Some are worried, though, because customers can still go into stores and enjoy "habit of dealers to give long discounts." As for prices, there are those who think TVs are too closely priced right now. In words of one: "We've squeezed more than the water out of prices — we're now squeezing the blood." Fact is defense production increases are still far short of closing the gap caused by civilian curtailments, says important National Assn, of Purchasing Agents, reporting on nation's economy as a whole. It opines that December's firm prices were barely being maintained in January; that though inventories are lower and becoming better balanced, there are "more elements pointing to price declines than increases during the next few months." The forces of inflation, says NAPA, have been spent, at least temporarily. * * * * Emerson's Ben Abrams is one who believes current NPA materials curtailments are proving boon to the industry. "Inventories are down," said he, "because our industry is selling more than it's currently producing. At around 100,000 sets per week output, inventories will continue to go do wn because the market can absorb more. I still think we're going to have TV shortages." When? In about 2 months, said Mr. Abrams. "Over the long pull, we can't help but come out all right. Our output needed tightening up. We have learned the lesson of overproduction." # $ * # Dun & Bradstreet December retail sales & end-of-December retail inventory figures, due by Feb. 1, weren't reported up to press time — but RTMA disclosed that distributor inventory rose to 600,546 TVs as of Dec. 28 from 560,196 on Dec. 23; to 677,209 radios from 582,605. On Dec. 28, factory inventories stood at 206,741 TVs and 292,058 radios (Vol. 8:2). Thus total factory-distributor TV inventories at end of 1951 were 885 , 950 ; D&B retail figure should complete this to show how trade really entered new year. 8