Weekly television digest (Jan-Dec 1960)

20 DECEMBER 5, 1960 Sizing Up Electronics: Factory sales of the electronics industry this calendar year “may be expected to approximate ?11 billion, up from $9.2 billion in 1959, with all sectors of the industry sharing in the advance.” So says the elaborate & attractive 60-page annual report of Television-Electronics Fund, issued by the open-end investment company to shareholders last week. This size-up differs sharply from EIA’s own estimate of 1960, which also saw electronics advancing to a new record this year — but with a more modest gain — to $9.7 billion (see story on p. 17). TV-Electronics Fund, whose estimates were prepared earlier than EIA’s, gives this breakdown of 1960 factory sales; Commercial & industrial electronics, up from last year’s $1.6 billion to about $2.4 billion (EIA says $1.75 billion). Replacement parts, tubes & semiconductors, from $900 million to $1.1 billion (EIA says the figure remained at $900 million). Military electronics, from last year’s $4.7 billion to $5.4 billion (EIA says $5 billion). EIA and the Fund agree only on the volume of consumer electronics — both say $2.1 billion, up from $2 billion. When such “service” factors as wholesale & retail markups, broadcasting, installation & repair are added, says the Fund, the electronics industry’s 1960 volume goes up to an estimated $15.5 billion, compared with $13.6 billion last year and $12.3 billion in 1958. New 19-in. tube with 92-degree deflection angle is now being sampled to set manufacturers, as predicted here Oct. 24 (Vol. 16:43 pl5). The non-bonded tube is a companion to the 23-in., 92-degree tube, for applications when slim cabinets are not essential. All 19-in. tubes currently in production have 114-degi’ee deflection, while 23-in. non-bonded tubes are made in 2 types — with 114-degree or 92-degree deflection. Although the new 92-degree, 19-in. tube will be priced the same as the 114-degree tube of the same size, it will make possible some reduction in cost because of lower deflection voltages and the use of some related components with wider tolerances. The tube may be used in some spring drop-ins and 1962 models. Exports of Japanese receiving tubes to Canada, suspended since Oct. 14 (Vol. 16:44 pl7), are due to be resumed early next year, when a voluntary quota system is worked out. Before the suspension, Japanese tube shipments to Canada reached an annual level of 3.9 million units — up from the 2.3-million level of 1959. The Canadian govt, wants this cut to about 1.6 million a year. Telectro Industries Corp. has been aw'arded an initial Air Force production contract of $300,000 for its Telectrovision slow-scan TV system (Vol. 16:11 p22). Using telephone lines to carry non-moving TV pictures, the Telectrovision system has provisions for picture storage & for making permanent copies. Deliveries are to start this year. Magnetron-type cooking unit applicable for home electronic ranges has been developed by Litton Industries. Marking its “first large-scale entry into the commercial field,” Litton has contracted to supply the electron-tube power packs to the Tappan Co., maker of electronic ovens. Litton described the new magnetron as “especially suitable for radio frequency food preparation,” said it results from 2 years of development. Japanese TV factory sales in September totaled a nearrecord 321,724, second only to the all-time high of more than 350,000 sets in Dec. 1959. September radio sales totaled 1.3 million sets. ■ GE Sees Prices Holding: Prices of consumer electronics and appliances should hold steady during 1961, declines in most electrical items having run their course. So said GE Chmn. Ralph J. Cordiner last week at his annual year-end news conference. At the same time, he said he foresaw little possibility of general price increases in TV next year — but rather an upgrading in price levels due to added features & innovations. To freeze prices at their present levels, he said, it will be necessary to improve manufacturing efficiency, cut distribution costs and to respond quickly to consumer demands. He expressed confidence in the nation’s economy hy pointing out that GE’s U.S. & Canadian plant & equipment expenditures for 1960 will total $135 million vs. $91 million last year, and will increase further in 1961. He said the company’s 4th-quarter 1960 & first-quarter 1961 earnings will be adversely affected by the recent lUE strike. He also made these points: (1) Like AT&T, GE intends to get into the field of exploration & economic exploitation of outer space without govt, contracts. (2) He expects consumer goods to continue to comprise about 25% of GE’s total business in 1961. FM radio tuners in TV sets could become a trend next year — capitalizing on the upsurge of interest in FM and the improved sound systems in many 'TV consoles. Magnavox, which tried out a combination 23-in. TV & FM set this fall (Vol. 16:29 pl5), found consumer acceptance good, now incorporates FM radio in 2 of its 5 new 27-in. models (Vol. 16:45 pl8) — in addition, of course, to its TV-radio-phono combos. The FM tuner is a separate unit, with its own tone & volume controls, operating independently of the TV tuner. The FM-equipped 27-in. sets are $399.50, $419.50 & $435 (non-remote, depending on cabinet style) and $50 more for similar sets with remote control. Magnavox’s pitch for its 27-in. sets, incidentally, will be that they supply “pictures almost half-again as large as today’s 23-in. sets, in cabinets that take up no more wall space.” Mercury Tube Corp., Newark, has demanded dismissal of FTC charges that it marketed TV picture tubes without disclosing that they were rebuilt & contained used parts (Vol. 16:46 pl8). In a formal answer to FTC’s complaint. Mercury contended each tube carton showed “in large, clear and distinct language that the envelope portion has been reused.” Herold Radio & Electronics Corp., now operating under Chapter XI of the Bankruptcy Act, came close to the breakeven point in October, Pres. Jeiry Herold stated at a recent hearing before referee Arthur J. Doran. He predicted that November shipments would top October’s $470,000. Hospital TV set, designed for use in semi-private rooms & wards, is now being produced by GE and will soon be available through GE TV distributors. The 19-in. set, w'ith alcohol & burn-resistant finish, is adaptible for wired remote control & pillow speakers, has volume limiter. . Merger talks between Lionel Corp. and the Muter Co. (speakers & compohehts) have been terminated, according to Lionel Pres. Maj. Gen. John B. Medaris. Muter Co. vp Leslie F. Muter Jr. stated that Lionel’s stock-exchange offer was “not acceptable,” and that his company has insisted on “something close to 2.4 to 1.” Radio retail sales in the U.S. this year will total 20.5 niilliou units, inclnding imports — 121^ % ahead of last year — Radio Advertising Bureau estimated lastweek; ' :