Television digest with electronic reports (Jan-Dec 1954)

Trade Report April 3, 1954 ANOTHER $150 SET; THE RUSINESS OUTLOOK: Now coiiies Hallicraf ters with a 17-in. table model at $150 in walnut finish, $160 mahogany, $170 blonde to compete with Crosley's fast-moving Super V series listing at $140, $150 & $160 (Vol. 10:13) and reportedly being produced now on a 5-shif ts-a-day basis. We checked also on rumors that a $130 model was about to be introduced by another manufacturer, but he denied it flatly. Whether the Crosley & Hallicraf ters prices will deter anticipated increases in list prices of new lines due from the majors this spring and summer (Vol. 10:12), it's too early to tell. It could be that those who abandoned 17-in. , notably RCA, whose low end now is a 21-in. table at $200, will be forced back to it if indeed the 17-in. has peculiar appeal as home's second set and consumer demand persists. Among some of larger manufacturers, however, they say that the phenomenon of today's market is demand for higher-priced merchandise — bigger and better sets. This despite prospect of even more expensive color. One told us dealers are clamoring for more deluxe items than company had planned for, noting especially the brisk demand in places like the Fresno (uhf) area and such new markets as Great Falls. Mont., where buying power is likewise high and signal strength extraordinarily good. "It's going to be a terrific second half," said this optimistic spokesman. But another medium-sized manufacturer sized up the market thus: "Business seems to be holding up well in quantity, but the problem of making money at the prices at which the retail salesmen are selling our products is one to conjure with. It will be very interesting to see what happens at the retail level when RCA starts selling their color sets." [RCA 15-in. at $1000 due on market soon.] * * * * * Looking at general business situation, you get every which-way kind of analysis from the economic experts — ranging all the way from Federal Reserve Board to the big & little manufacturers. What they boil down to, apparently, is that the business decline is showing signs of leveling off. N.Y. Herald Tribune's Harvey E. Runner puts it this way: "April will be a better economic vane than March. Easter retail sales may be the decisive clue... In fact, the April gain in retail sales could be sufficiently large to make up a fair part of the decline sustained in the first 3 months..." National Assn, of Purchasing Agents reports buying on hand-to-mouth to 90-day basis, but also sees signs that the business decline has abated. On basis of survey of its members in March, it found prices showing some strength, inventories of unworked material down, employment situation improving. On the other hand. Office of Business Administration, Dept, of Commerce, found recession persisting into 1954 because of continuing inventory liquidation and defense cutbacks. * * * * Philco financial v.p. Courtnay Pitt is one who takes an optimistic view of the outlook. Last week, he told American Bankers Assn.'s National Installment Credit Conference in Chicago that a higher percentage of TV-appliance sales is being financed now than at any time since the war. He predicted 6,000,000 TV set sales in 1954, said "inventories are down to a good working basis and it is even possible you will see some price increases this year, as compared with reductions in late 1953." Philco looks to 50% or more increase in consumer sales of air conditioners over 1953, or 1,250,000 units at $450,000,000 retail, he said, and by 1956 the figure will exceed 1,500,000. He said refrigerator sales should be as high as last year's 3,775,000 units; home freezers slightly better than last year's 1,200,000 retailing for $480,000,000; electric ranges, up 10% to 1,430,000 units. Trend will doubtless continue to automatic home laundry equipment, he added, and good market is indicated by fact there are 44,000,000 wired homes but only 2,500,000 automatic dryers as yet. 8