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Heinl Radio News Service
12/19/45
ONLY b% OF RADIO SETS PRICED; MEANS BIG PRODUCTION DELAY
Despite a rising rate of radio set price approvals, OPA at the end of the third week of weekly reporting had priced only a small proportion, probably less than 5 percent, of the expected number of 1946 models of radios and phonographs, according to the industry estimates, the Radio Manufacturers' Association reports.
Altogether between 2500 and 3000 models are expected to be priced by OPA.
The latest report, which covered prices approved only through the week ending December 7th, brought the total price approv¬ als to 90 radios, chiefly table models, and 36 phonographs. The tnird week's report Included radio-phonograph combinations and con¬ soles for the first time.
With Christmas almost here, radio set production is rising a.6 larger companies obtain price approvals, but manufacturers be¬ lieve there is not enough time to change their gloomy predictions of relatively few radios, probably under 250,000, for the Christmas trade ,
A threatened shutdown of radio parts manufacturers, which came abruptly following an OPA announcement of a new regulation which would require the rollback of many parts prices, was apparently avert¬ ed last week when OPA agreed to postpone the effective date of the order from December 3rd until January 15th, except on new orders and orders on unpriced products.
The regulation, when issued, was made effective Immediately, on December 3rd, and made it illegal for parts manufacturers to del¬ iver shipments to their buyers at previously-approved prices after that date if they were "out of line". Protests from the parts manu¬ facturers and notifications to set manufacturers that they were halting production brought quick action from OPA.
What effect this rollback on parts prices may have on set prices already approved was not immediately apparent, but OPA offic¬ ials expressed confidence that manufacturers would lower their own prices if their costs for parts are cut. Parts manufacturers, on the other hand, indicated they may try to upset the rollback order be¬ fore January 15th. A hearing may be demanded by the OPA Radio Parts Manufacturers' Industry Advisory Committee,
Meanwhile, one large parts manufacturer is shut down by a prolonged strike, and strikes are threatening to halt the production of receiving sets by some of the larger set manufacturers.
Large volume production is not expected before the Summer or Fall of 1946 if current deterrents continue, and it ma.y be delay¬ ed longer if they increase,
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