Television digest with electronic reports (Jan-Dec 1954)

TV TRADE'S FIRST-QUARTER REPORT CARD: TV-radio industry’s first 1954 quarter, ended April 2, shows nicer balance between production, sales and inventory than in many years — albeit considerably down from same 1955 period. RETMA estimates production at 1,445,000 TVs, factory sales, 1,586,000; distributor sales. 1,663,000; retail sales , 1,767,000. Inventories at all levels were about 1,600,000 at close of quarter. Thus the 1954 first-quarter trade statistics, looking very much like 1952 at most levels, are way below same period 1953 — except for retail sales, which held up remarkably unit-wise because of wave of buying of low-end sets, some as low as $140. The comparable 1953 figures: production, 2,260,000; units; factory sales. 2,174,000; distributor sales, 2,060,000; retail sales, 1,780,000; inventories at all levels, 2,100,000. For 1952; production, 1,325,000; factory sales, 1,307,000; distributor sales, 1,260,000; retail sales, 1,280,000; inventories, 1,500,000. Radio production in first quarter was 2,585,000 units vs. 3,834,784 in 1953. TV production totaled 123,280 week ended April 2, compared to 124,343 units preceding week and 118,289 week of March 19. Radio production was 180,726 compared to 191,149 week of March 26 and 202,893 week before. ♦ ♦ * ♦ Emerson is also out with 17-in. table at $150, along with Crosley and Hallicrafters (Vol. 10:13-14) — again leading to inevitable question; Whither TV prices? Immediate trend seems downward, but you can provoke a lively discussion by asking which way they'll go when new models are introduced in June and July. Nobody has a definite answer yet, at least as far as we can discern. We even heard one manufacturer say that the industry is so full of surprises these days that he wouldn't be shocked to see a $100 model this summer. Nobody will agree with him now, of course. RCA and Philco say they see no increase in offing, but won't project their predictions beyond June. Philco spokesman was especially cautious, saying company is "playing it by ear" from week to week and problem is always under review. Admiral's Joe Marty said it all depends on what happens to parts prices in next 60 days. If they stay at present levels, chances are TV prices won't go up, he said. But if they rise, set makers may well pass along increases, he declared. Admiral pres. Ross Siragusa this week told annual stockholders meeting company's largest capital expansion program in its 20-year history would get under way this fall, with most of it going to TV, said details would be released in 2 or 3 weeks. He reported Admiral's first-quarter sales and profits were below the $3,056,878 earned on sales of $69,191,849 in first quarter of 1953. Motorola's Ed Taylor reiterated his previous statement to us (Vol. 10:12) that his company definitely plans to raise lists, and markups, on new models to be introduced in June. He said recent talks with distributors & dealers convinced him it was absolutely necessary to raise prices. Dr. Allen B. DuMont, with no sets selling under $200, agreed with Taylor that prices will go up. Possibility of 2-way stretch in prices, with leader models going still lower to around $120 or $130 and some over-$200 models going higher, was broached by one major manufacturer. Taylor said Motorola was considering "stretch" idea among several alternatives. Other manufacturers we spoke to didn't think it feasible. Unknown factor in price situation is what effect Crosley' s $140 Super V will exert on the market come June. It's apparently selling quite well, according to reports from markets where it has been introduced. Avco chairman Victor Emmanuel told stockholders meeting this week success of Super V had established the "salability of a so-called second set." Unverified trade reports had Crosley turning out more than 2500 per day, as against originally-planned total output of 40-50,000. 10